Yes—this is mostly governed by the **LPA**, plus securities rules and your valuation policy.

- A fund does **not** have to exit immediately after IPO. It can continue holding public shares if the GP believes that maximizes LP value.
- The **LPA** typically governs:
- **fund term** and extension rights
- whether proceeds must be **distributed** or can be **recycled**
- what happens if assets remain near end of fund life
- If the holding outlasts the core term, managers usually:
- seek a **1 to 2-year extension**
- **distribute shares in-kind** to LPs
- or sell in the **secondary/public market**

- **Carry** is generally realized when proceeds or stock are distributed under the waterfall.
- **Fees** usually **step down after the investment period**, often from committed capital to invested capital.

References:
- https://decilehub.com/base/1-general_questions/2442-exit-of-fund-before-startups-have-liquidated
- https://decilehub.com/base/1-general_questions/164539-how-does-the-cornerstone-lpa-handle-management-fee-step-downs-between-the-investment-period-and-post-investment-period
- https://decilehub.com/base/1-general_questions/20356-early-exists-in-the-fund-should-distribute-proceeds-or-reinvest