In-Kind Distribution

An In-Kind Distribution is a distribution where a fund delivers securities or other assets to its investors instead of (or in addition to) cash. In venture and private equity funds, an In-Kind Distribution commonly occurs when a portfolio company becomes publicly traded and the fund distributes shares, and the In-Kind Distribution mechanics are governed by the LPA and tax considerations.

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Ryan Roberts Startup Lawyer
Ryan Roberts is a startup lawyer with more than two decades of experience advising on venture financings and M&A transactions totaling more than $1 billion. He is the author of the Amazon bestselling startup law book Acceleration.