On September 1, 20X1, you returned a signed term sheet to indicate your willingness to invest $250,000 in company XYZ. Three other investors also indicate an interest in investing $250,000 each.
The manager of the network proceeds with forming PARTEQ Angel Network SPLP #x Limited Partnership. As a direct investor, you are issued 250,000 Class C units of SPLP #x. The other investors are also each issued 250,000 Class C units of SPLP #x.
In addition to $1,000,000 of direct investments, the Investment Committee of the pooled fund approves an investment of $500,000 from the pooled fund. The investors of the pooled fund are issued 500,000 Class B units of SPLP #x.
On August 1, 20X3, XYZ is sold for cash, of which SPLP #x receives $15,000,000. The proceeds will be split two-thirds (1,000,000 units) to the Class C units and one-third (500,000 units) to the Class B units. Of the $10,000,000 allocated to the Class C units, $1,000,000 is distributed to the four direct investors as a return of capital, representing the cost base of the investment. Of the remaining $9,000,000, PARTEQ is allocated 5% for their advisory services ($450,000). The balance of $8,550,000 is split by the four investors.