In the event Special Purpose Vehicle (SPV) makes the decision to invest in another deal collectively, you may be wondering how the capitalization table (cap table) might look. Fortunately, it will not need to include all the different Limited Partners (LPs) who hold a stake in the SPV. The SPV functions as a single entity, it will only be listed as a single entity within your cap table.
When there is a liquidity event and the SPV decides to cash in its investment, the typical process would be the funds flowing back to the SPV and then distributed to the members involved with their share of the returns based on the proportion of their membership interests. The fund managers or the General Partner typically receives a portion of the returned capital as a fee. This percentage fee is determined at the time of setting up the SPV and is directed back to the general partner as a performance or "carry" fee.