What is Equalisation Mechanism?
July 4, 2025
A process that involves the establishment of strict
equality amongst investors who join the roster of a
fund at different closing dates. Investors who join
after the first closing date must compensate the ini-
tial investors, usually by paying them interest. Inter-
est is, in effect, collected by the fund manager and
paid on a pro rata basis to investors during the first
closing.