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In the event of any follow-on investment by the Investor, the Fund Manager shall accordingly adjust the Member’s account to reflect such investment. The subsequent allocation of Profit and Loss (P&L) for the relevant quarter will be based on a weighted average calculation, taking into account the periods before and after the follow-on investment, as follows:
The quarter will be divided into two periods: pre-follow-on investment and post-follow-on investment. Each period’s average account balance will be weighted by its duration relative to the entire quarter.
The weighted average balance of the Investor’s account for the quarter will be determined by combining the weighted balances of both periods. The Fund’s quarterly P&L will then be allocated to the Investor’s account in proportion to this weighted average, relative to the aggregate weighted averages of all Fund investors.
This methodology ensures equitable P&L distribution, reflective of the timing and scale of follow-on investments.