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End-of-Life / Zombie Fund Action Memo

Create an LP action memo for an end-of-life or zombie fund covering remaining assets, fees, valuation, governance, liquidity options and next steps. Assess a mature fund's warning signs and document a practical LP resolution strategy.

Open the interactive End-of-Life Fund Memo

What this generator covers

  1. Executive summary
  2. Fund status
  3. Performance & cash realization
  4. Remaining assets
  5. Warning signs
  6. Fees & expenses
  7. Valuation review
  8. Exit plan & timeline
  9. Liquidity obligations
  10. Conflicts & governance
  11. Resolution options
  12. Required information & actions
  13. Recommendation

Inputs used by the document

  • Fund status: Fund, Manager, Vintage year, Fund age, Remaining companies, Remaining NAV, Unfunded commitments
  • Performance & warning signs: Fund performance, Extensions used, Current fee burden, GP team condition, Valuation observations, GP exit plan
  • LP response: Conflicts, Options considered, Information required, Recommended action

01

Executive summary

Mature Fund III, managed by Legacy Fund Manager, requires an active end-of-life plan. The fund has $185m of remaining NAV and 4 of 18 original investments remaining companies.

02

Fund status

Vintage 2014; current age 13 years. Two one-year extensions used; third extension requested.

03

Performance & cash realization

1.42x TVPI, 0.88x DPI and 7.1% net IRR. Evaluate progress primarily through realizations, cash yield and credible remaining-value evidence.

04

Remaining assets

4 of 18 original investments represent $185m of reported NAV. Require asset-level operating, valuation and exit analysis.

05

Warning signs

Two original partners departed; remaining team has limited new-fund prospects

06

Fees & expenses

$4.5m annual management fee plus fund expenses

07

Valuation review

Two assets have been held at unchanged marks for five quarters

08

Exit plan & timeline

Staged sales over 24-36 months; no asset-specific milestones supplied

09

Liquidity obligations

Unfunded commitments are $12m. Reserve for follow-ons only where they protect or enhance realizable value.

10

Conflicts & governance

Fee incentives may favor extension; proposed continuation process uses a GP affiliate

11

Resolution options

Conditional extension, LP-led secondary, structured liquidity, asset sale or wind-down oversight

12

Required information & actions

Independent valuations, asset-level exit plans, fee budget, cash forecast and conflict disclosures

13

Recommendation

Support a six-month conditional extension with fee step-down, monthly milestones and parallel secondary price discovery

How to use this document generator

Review the example assumptions, replace them with information from your own investment process, and check every statement against the governing documents and source data. The interactive version updates the draft immediately and can export it to Word or PDF without a login.

Template transparency

Draft status

This template creates an editable first draft. Review every statement against source data and governing documents.

Privacy and export

Inputs stay in your browser. Word and PDF exports are created locally and this page does not store your document.

Scope

This is a practical starting point, not legal, tax, or investment advice.

Template 1.0 · Reviewed 13 August 2026