What it is
Distributions come from operating cash flow, refinancings and sales. Reporting is how LPs know what the GP is doing with their money: quarterly updates, annual financial statements, tax forms (Schedule K-1) and notices of acquisitions and sales.
How it works
Per-deal distributions return capital as each property generates or realizes cash, rather than waiting for the whole fund to wind down, which can shorten the time your money is tied up.
Example: Deal A is refinanced in year 3; under per-deal distributions, LPs in Deal A can receive refinancing proceeds right away (after reserves), rather than when the last property sells.Audited statements are the gold standard; reviewed or unaudited statements are cheaper but provide less assurance. K-1 timing matters for your own tax filing.
Good for LPs vs. watch out for
✓ Good for LPs
- Per-deal distributions on a stated schedule
- Quarterly reports with property-level detail
- Annual audited (or at least reviewed) statements
- Committed K-1 delivery timeline
- Statutory information rights preserved
⚠ Watch out for
- Distributions at GP’s sole discretion with no reporting on reserves
- Annual-only reporting
- No financial statements, only “investor letters”
- Waivers of LP information rights
How Story Samurai Investments handles it
Template: per-deal distributions at least [PLACEHOLDER – frequency] (LPA §5.1); quarterly reports within [PLACEHOLDER] days, annual statements [PLACEHOLDER – audited/reviewed] within [PLACEHOLDER] days, notice of each acquisition and disposition, and Texas statutory information rights (LPA Art. 8); K-1s within [PLACEHOLDER] days after year-end (LPA Art. 7).
Based on our template documents (TEMPLATE, DRAFT FOR ATTORNEY REVIEW, NOT FOR USE). The final Limited Partnership Agreement controls.
Where to find it in the documents
- LPA §5.1, Art. 7, Art. 8
- PPM §9