PE Distribution Waterfall Explained: The Math That Determines Whether LPs Get Paid Before the GP
PE Distribution Waterfall: How LPs Get Paid PE Distribution Waterfall Explained: The Math That Determines Whether LPs Get Paid Before the GP TL;DR: A distribution waterfall is a contractual sequence t
How an LBO Actually Works: What Private Equity Does With Your Capital
TL;DR A leveraged buyout puts acquisition debt on the target company's balance sheet, not the fund's. LPs contribute equity. The company services the interest from its own cash flows. PE buyout funds
Subscription Credit Facilities: How Your PE Fund's Reported IRR Is Likely Inflated
The Short Version: Same Deal, 11 Points of IRR Apart Your PE fund buys a company for $100 million in month one and sells it for $200 million at month 36. If your GP called your capital at deal clos...
Capital Call in Private Equity: What Every LP Needs to Know Before the Wire
According to ILPA's September 2025 Capital Call & Distribution Template v2.0 , standard capital call notices give LPs 10 to 15 business days to wire funds after receiving notice. That window...
Capital Call Notice: What It Means and What Happens If You Miss One
TL;DR: When you commit capital to a private equity fund, you are not writing a check on day one. You are making a binding legal promise. The GP will call that capital over 3-5 years as deals are ma...
What Is a Capital Call in Private Equity? A Plain-English Guide for LP Investors
What Is a Capital Call in Private Equity? A Plain-English Guide for LP Investors TL;DR: According to Preqin's 2025 Global Private Equity Report , global private capital dry powder reached $3.7…