This illustration from the Astrea 9 prospectus explains the J-Curve where in the earlier years, limited partners (LP) will see them having more cash outflow (from their pockets) into the fund but perhaps after 5 years the funds are likely to see the distributions.
It makes sense to think about what you wish to achieve for your portfolio and decide on your mix.
The risk is… the underlying business (as a cohort) suffer and so less money is flowed to the funds, which is flowed to Astrea 9.
The underlying funds don’t die. Their values might become smaller, and would explain the distributions would take longer…
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