- Distributions are usually made when the fund has realizations, such as exits, and the exact mechanics are governed by the LPA.
- LPs typically receive distributions according to the fund’s waterfall and their pro rata ownership.
- The GP’s capital commitment is generally treated like an LP interest:
- it is drawn through capital calls alongside LP capital
- it participates in returns pro rata
- it does not receive special economics just for the commit
- Separately, the GP may receive carried interest under the waterfall once the LPA conditions are met.

References:
- https://decilegroup.com/articles/gp-commit
- https://decilehub.com/base/1-general_questions/5626-what-s-a-good-policy-for-making-cash-or-in-specie-distributions