A distribution in kind hands investors a fund's assets, usually shares in a company that has gone public, instead of cash.
What the film says
In private equity, a fund owes you money. What can it send instead of a check? Three. Two. One. Shares in a company. That's a distribution in kind. Say the fund owns ten percent of a company that lists. Instead of selling, it hands out the shares. So why do investors care? Now the investor decides when to sell. And some investors can't hold shares at all. Getting paid doesn't always mean getting cash.
In the glossary: Distribution in kind
A simple example with round numbers, not advice. Terms vary by fund.
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