By definition, the vintage year is the year in which capital is first called from or drawn down from investors.
I understood like Vintage year - With reference to a private equity fund, the year it closed.??
why wouldn’t the same definition apply? Called Down/Drawed Down seems to be a very “Private Equity” term … so it is the year capital was first called down / drawn from the investors.
It is not definitely when the fund closed…
Pls chk Glossary section, last few pages…?
- The year of the investment vehicle’s first drawdown or capital call from its investors;
OR
- The year when the first COMMITTED CAPITAL from outside investors is closed and legally binding.
I think you are looking at 2 …
You are an investor who is looking for Private Equity Funding. You approach the investors, pitch to them, they like it and agree to give you the money not now, but in 2013. And there is a legal and binding contract to that effect. 2013 is the Vintage year.
They committed to the capital from 2013 in a legally binding manner.
Now after this - you decide that 2013 is not good, you will start operations only in 2014. Then 2014 by this definition is where you would make the first capital call.
In this case - I still think 2013 would be the vintage year…
Also check Alternative investment part (Vol 5 P No 39) & Glossary
Little confusing?
I am thinking the use of “closed” does not mean physical closure - but when the “deal” was closed.
pretty sure it is first influx of capital (deal closure) and not physical closure of the fund.