Private Equity
Recallable Capital and Recycling Provisions: What They Really Cost LPs
Recycling provisions let a private equity general partner reinvest exit proceeds instead of returning them to you, and recallable capital lets the GP pull back a distribution you already banked....
Jeff Barnes, MBA··10 min read
Private Equity
NAV Loans in Private Equity: How Fund-Level Financing Works, and the DPI Controversy LPs Need to Watch
A NAV loan is a line of credit that a private equity fund borrows against the current value of the companies it already owns, not against the money its investors still owe. The market has grown to rou
Jeff Barnes, MBA··9 min read
Private Equity
Subscription Lines of Credit: How Sub Lines Distort Reported PE/VC Fund IRR
A six-month delay in calling capital can add close to two full percentage points to a private equity fund's reported IRR without changing a single dollar of profit. According to the Kenan...
Jeff Barnes, MBA··10 min read
Private Equity
GP Commitment Explained: How Much Skin Should Your Fund Manager Actually Have in the Game
The 1-5% GP commitment benchmark hides a catch: fee-waived commitments are weaker than cash. Here's where to check the Form ADV, PPM, and LPA before you wire.
Jeff Barnes, MBA··10 min read