What is Harvest Period?
The harvest period is the latter phase of a fund's life — after the investment period — when the GP focuses on exiting portfolio companies and returning capital to LPs rather than making new investments.
After the investment period closes, the fund enters the harvest phase: the GP works to exit investments through IPOs, strategic sales, or secondary transactions, distributing proceeds to LPs as realizations occur. Capital calls during this phase are limited to follow-on investments.
The harvest period is when DPI accumulates and LPs can assess whether the fund's paper returns (TVPI) will be realized in cash. Good portfolio management during harvesting is a key differentiator between top-quartile and median managers.
Also known as: monetization period, realization period