Hi all -

Question about search capital committed but unused - suppose a hypothetical situation where a searcher raises $400k to fund a 2yr search, but an acquisition is executed after 6mos. Over those 6mos, $125k of the search capital is spent. How is the remaining $275k of search capital treated? Is it treated as equity contributed by the searcher in the acquisition? Does the searcher keep it? Is it required to be contributed as equity in the acquisition?

Any thoughts on this topic would be great!