What do “capital contributions” and “distributions” mean on my K-1?

Capital Contributions reflect the amount of capital you invested into the SPV during the tax year. This typically corresponds to the price per unit times the number of units purchased.

Distributions reflect any return of capital you received from the SPV, such as a cash distribution or an in-kind share distribution.

If your investment included a Placement Fee, the full amount you sent may be greater than the capital contribution listed on your K-1. This is because Placement Fees are not considered part of your capital contribution for SPV tax purposes. We recommend consulting your tax advisor on how to treat this fee on your personal return.