Rolling Funds, Subscription Cycles, and Equalization
from Syndication Attorney Field Notes with Tilden Moschetti Hosted by Tilden Moschetti
Many sponsors view rolling funds as a convenient way to accept investor capital on a continuous basis, but unstructured admissions can inadvertently dilute your earliest investors. As a syndication attorney, Tilden Moschetti often sees the administrative and mechanical realities of rolling capital get overlooked during the marketing phase. This episode breaks down the concept of a rolling fund, detailing how late money can capitalize on early risk and why equalization payments are necessary to keep your accounting honest. You'll learn how to implement disciplined subscription cycles, navigate the potential tax complexities of catch-up payments, and evaluate whether a single-close fund might actually be a better fit for your strategy. Also see: What Is a Rolling Fund? Subscription Cycles, Closings, and Documents — https://www.moschettilaw.com/what-is-a-rolling-fund-subscription-cycles-closings-and-documents/ Note: This episode's audio is generated using AI voice cloning technology based on Tilden Moschetti's written work. Watch the video on YouTube: https://youtu.be/rEpJnXP6Sa8
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What this episode covers
Sponsors often treat rolling funds as a magical entity that allows them to take investor checks continuously. This field note breaks down the mechanical reality of rolling capital and how to protect early investors from dilution.
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