C1T7L3 · Revised 2026-10-26

Decision and objectives

Practical task: Maintain a fictional venture-fund commitment ledger

Objectives: Distinguish commitment paid-in capital and distributions; Calculate a cash multiple and remaining funding obligation; Stress a capital call and delayed exit.

Required prior knowledge: C1T7L2. Classification: restricted. Revision: 2026-10-26. All fictional names, prices, rates, fees, calendars and tax schedules below are hypothetical unless explicitly identified as a dated document observation.

A venture-capital fund's reported investment value can be far from cash that can be spent. Investors may commit capital before it is called, then wait for uncertain distributions. The task is to reconcile promises to contribute, cash actually paid, cash returned and remaining estimated value. A high multiple with no dates is not a complete return measure.

Mechanics

The investor owns fund units and may have an additional contribution commitment under the investor agreement. The fund invests in venture companies under its mandate; company ownership, priority rights, dilution and exit arrangements determine the underlying risk. The investment period, fund life, possible extensions, call notice, default remedies, transfer restrictions and distribution waterfall require direct reading.

A capital call is a request to pay under a commitment. It is not an investment loss, though it creates a liquidity requirement. Distributions are cash or assets returned under the fund's rules. Residual value is an estimate of investments still held; it is not already distributed cash. An investment can be written down before a sale or sold for an amount different from the previous mark.

Price and return drivers

Uncalled commitment = original commitment minus amounts called, adjusted only for explicit recycling or recall terms. Distributed-to-paid-in multiple = cash distributions / paid-in capital. Total-value-to-paid-in multiple = (distributions + residual value) / paid-in capital. These simplified multiples ignore time value and do not replace an internal-rate-of-return calculation. A 1.5× multiple after two years and after ten years are different experiences. Fees/carry and the waterfall must be included consistently in the underlying amounts.

Worked case

Hypothetical eligible investor commits TRY 500,000. The fund calls TRY 200,000 at inception and TRY 150,000 one year later; total paid-in TRY 350,000, uncalled TRY 150,000. By year three it has distributed TRY 100,000 net of all supplied fund-level fees/carry, and residual value attributed to the investor is TRY 300,000. Distributed multiple is 100,000/350,000 = 0.2857×. Total-value multiple is (100,000+300,000)/350,000 = 1.1429×. Only TRY 100,000 has actually returned; the TRY 300,000 residual remains illiquid and uncertain.

The investor retains TRY 150,000 in accessible cash for the uncalled obligation. That reserve earns whatever its actual accessible vehicle provides, but it cannot simultaneously fund unrelated spending. Do not count the unused commitment as paid-in investment or exclude it from household liquidity planning.

Adverse case

The fund calls the remaining TRY 150,000 with the fictional agreement's stated notice, while the investor has only TRY 90,000 accessible. Funding shortfall is TRY 60,000. The contract may impose default remedies; their exact consequences must be read rather than invented. Simultaneously residual value falls from TRY 300,000 to TRY 180,000 before the new call is invested. On the original TRY 350,000 paid-in base, total-value multiple falls to (100,000+180,000)/350,000 = 0.8×. A call increases paid-in capital and assets if received; it is not itself a gain that restores performance.

Practical use

Turkish venture-capital funds are restricted to qualified investors under the current framework. Verify eligibility and effective rules, including the 2026-10-26 change, then obtain the issue documents and investor agreement appropriate to the fund. Compare management-fee base (committed or invested capital), performance allocation, expenses, recycling, extensions, transfer approval and exit rights. Actual investor tax and fund-level treatment require year/status/acquisition/effective-date evidence. This lesson applies no tax percentage and uses net-of-supplied-fund-fees distributions only for the stated arithmetic.

Decision boundaries

Use this structure for eligible patient capital with a credible call reserve and tolerance for loss. It fails a need for predictable withdrawals or a plan that assumes residual valuations can be sold immediately. Decline a commitment if future calls depend on selling another illiquid asset or if default consequences and extension rights are unclear. “Uncalled” is not the same as “cancelable.” A multiple is informative only with cash dates and a clear fee boundary.

Practice and references

Exercise: hypothetical commitment TRY 240,000; calls TRY 80,000 and TRY 100,000; distributions TRY 45,000; residual TRY 135,000, all before investor tax and after supplied fund charges. Answer: paid-in TRY 180,000; uncalled TRY 60,000; distributed multiple 0.25×; total-value multiple 1.0×. If only TRY 40,000 is accessible for the next full call, the funding gap is TRY 20,000. Explain why a 1.0× total-value multiple does not mean all principal has been returned in cash.

Takeaway: commitments create future funding duties; residual marks are not distributions.

Reference guide: venture-capital-fund; cash-multiple; commitment-balance; capital-call; commitment; distribution; residual-value. Next: C1T7L4. Topic test.

Sources: SPK qualified-investor criteria press release — Entire release; criteria updates and GYF/GSYF exception removal; date 2026-10-26; checked 2026-10-26; SPK Venture Capital Investment Funds Introduction Guide — Definition; participation units; disclosure documents; date not stated; retrieved 2026-10-26; checked 2026-10-26. Source records: sources.json. Check the cited rule dates and confirm current dealing terms before any transaction.

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