If an investment in a company has not had a liquidity event by the time the fund term has finished, there may be an extension period to wait for an exit. Another option is to distribute the private shares to Limited Partners (LPs). These funds are usually created with one or two optional 1-year extensions. It's important to note that startup investments may take years before a liquidity event occurs.

The LPA specifies the conditions for what will take place at the end of the fund life. The options are: extend the fund life by 1 or 2 years, distribute the remaining interest to LPs, or liquidate the fund via a secondary transaction. Typically, when extending the fund, GPs don’t charge management fees.