Rolling closes

If you want to draw down the funds in an SPV, but keep the deal open for further investment, this is what we’d refer to as a ‘Rolling Close’, which carries an extra cost in addition to the regular deal fees.

In practice, Odin will invoice or deduct the total deal fees from the first ‘tranche’, and then each successive rolling close (including the final one) will cost £1,000 plus any % fee that may apply (assuming you have not reached the cap for % fees on the deal). Usually most syndicate-led deals will only involve one additional close at most, but there’s no limit to how many you can do within 6 months since the deal closed. If more than 6 months have elapsed since a deal closed, you cannot complete a rolling close and must open a new deal.

To notify Odin that you intend to draw down funds from the SPV but leave the deal open, please inform either your Customer Success representative or our Customer Support team (hello@joinodin.com), who will relay the information to our Deal Operations team.

It’s important that you don’t click the ‘Close my deal’ button if initiating a rolling close. Doing so would lock off the SPV from further investment. If you do this accidentally, please get in touch with either of our Customer Support team and they’ll reopen the deal.

As far as closing is concerned, the standard process applies in terms of legals and wiring funds, the only differences being that Odin won’t internally close the deal at the end of the process, and that the final investment amount in the legals would be the amount being drawn down in this tranche.

For rolling closes, you have two options when structuring your legals:

• Provide a separate set of legals for each tranche.
• Provide a single set of legal documents for all tranches, with the first tranche amount designated as the initial subscription. For the remaining tranches, include wording to the effect that any further funds received from Odin will be treated as extensions of the first tranche under the same terms, but these additional amounts are not legally binding and are contingent upon the receipt of funds from Odin.

Please note that as the deal remains open, existing investors (from the first close) will not receive their proof of investment documentation until the final close has been completed.

You can execute multiple closes before finally closing the deal, just let the Odin team know what’s required.