Private fund jargon, decoded.

Thresholds, fund-of-funds implications, and why some funds are 'QP-only'.

What the year-by-year view exposes that the aggregated view hides — accrued pref dynamics, refi mechanics, and how IRR builds over time.

Basis, ranges, and the offsets sophisticated LPs negotiate for.

Fund-level vs. deal-by-deal accounting, why each exists, and who each one favors.

Why the basis matters more than the rate — and how to read the basis line in a PPM.

Why the basis matters more than the rate — and how to read the basis line in a PPM.

What each party does, what their absence signals, and what you can read from the names that show up in a PPM.

Definitions, common splits (80/20, 70/30, tiered promotes), and the tax background that shapes them.

Definitions, common splits (80/20, 70/30, tiered promotes), and the tax background that shapes them.

Full vs. partial catch-up: how the GP claws their way to the headline split after the LP gets the pref.

Full vs. partial catch-up: how the GP claws their way to the headline split after the LP gets the pref.

When sponsors slice the cap stack, how class-level waterfalls change LP outcomes, and what to ask before you pick a class.

When sponsors slice the cap stack, how class-level waterfalls change LP outcomes, and what to ask before you pick a class.

When clawbacks trigger, how escrow vs. personal-guarantee structures differ, and what 'after-tax' clawback really means.

When clawbacks trigger, how escrow vs. personal-guarantee structures differ, and what 'after-tax' clawback really means.

The long tail of fee drag that doesn't make the headline summary.

The long tail of fee drag that doesn't make the headline summary.

Basis, ranges, and the offsets sophisticated LPs negotiate for.

Same trade-off as European vs. American waterfalls, framed from the GP's compensation perspective.

The long tail of fee drag that doesn't make the headline summary.

How private fund profits flow to LPs and GPs through the four standard tiers — return of capital, preferred return, catch-up, and carried interest.

Definitions, when each is meaningful, and how they evolve over a fund's life.

Fund-level vs. deal-by-deal accounting, why each exists, and who each one favors.

The seven fee families that show up in a typical PPM, where each lands in the cash flow, and what's market vs. aggressive.

The long tail of fee drag that doesn't make the headline summary.

What triggers each clause and the typical 75% supermajority threshold.

What each party does, what their absence signals, and what you can read from the names that show up in a PPM.

The seven fee families that show up in a typical PPM, where each lands in the cash flow, and what's market vs. aggressive.

Full vs. partial catch-up: how the GP claws their way to the headline split after the LP gets the pref.

Typical 1–5% of fund size, sponsor-financed vs. cash, and what to look for when the headline number is small.

Typical 1–5% of fund size, sponsor-financed vs. cash, and what to look for when the headline number is small.

Definitions, common splits (80/20, 70/30, tiered promotes), and the tax background that shapes them.

Typical 6–9% bands, simple vs. compounded, accrual vs. current pay — the hurdle the GP has to clear before they earn carry.

Typical 6–9% bands, simple vs. compounded, accrual vs. current pay — the hurdle the GP has to clear before they earn carry.

Same cash flows, different headlines — how time-shifting one distribution rewrites IRR but not the multiple.

Same cash flows, different headlines — how time-shifting one distribution rewrites IRR but not the multiple.

Typical fund NAV trajectory, fee drag in the early years, and when DPI breaks even.

What triggers each clause and the typical 75% supermajority threshold.

The long tail of fee drag that doesn't make the headline summary.

Composition, powers, and what triggers a vote.

The sections that matter, the sections to skim, and where the waterfall language actually lives.

Composition, powers, and what triggers a vote.

Why the basis matters more than the rate — and how to read the basis line in a PPM.

What gets negotiated, who gets MFN, and why MFN scope matters more than the headline term.

Same cash flows, different headlines — how time-shifting one distribution rewrites IRR but not the multiple.

What gets negotiated, who gets MFN, and why MFN scope matters more than the headline term.

When sponsors slice the cap stack, how class-level waterfalls change LP outcomes, and what to ask before you pick a class.

What triggers each clause and the typical 75% supermajority threshold.

What each party does, what their absence signals, and what you can read from the names that show up in a PPM.

The sections that matter, the sections to skim, and where the waterfall language actually lives.

Typical 6–9% bands, simple vs. compounded, accrual vs. current pay — the hurdle the GP has to clear before they earn carry.

Typical 6–9% bands, simple vs. compounded, accrual vs. current pay — the hurdle the GP has to clear before they earn carry.

The sections that matter, the sections to skim, and where the waterfall language actually lives.

Definitions, common splits (80/20, 70/30, tiered promotes), and the tax background that shapes them.

The long tail of fee drag that doesn't make the headline summary.

Thresholds, fund-of-funds implications, and why some funds are 'QP-only'.

Thresholds, fund-of-funds implications, and why some funds are 'QP-only'.

The long tail of fee drag that doesn't make the headline summary.

Solicitation rules, accreditation verification, and why 506(c) raises tend to look slicker.

Solicitation rules, accreditation verification, and why 506(c) raises tend to look slicker.

What 'return of capital' actually returns, and how aggressive sponsors widen the definition.

What 'return of capital' actually returns, and how aggressive sponsors widen the definition.

Definitions, when each is meaningful, and how they evolve over a fund's life.

When sponsors slice the cap stack, how class-level waterfalls change LP outcomes, and what to ask before you pick a class.

What gets negotiated, who gets MFN, and why MFN scope matters more than the headline term.

Typical 1–5% of fund size, sponsor-financed vs. cash, and what to look for when the headline number is small.

What the year-by-year view exposes that the aggregated view hides — accrued pref dynamics, refi mechanics, and how IRR builds over time.

What each party does, what their absence signals, and what you can read from the names that show up in a PPM.

What the year-by-year view exposes that the aggregated view hides — accrued pref dynamics, refi mechanics, and how IRR builds over time.

What the year-by-year view exposes that the aggregated view hides — accrued pref dynamics, refi mechanics, and how IRR builds over time.

Definitions, when each is meaningful, and how they evolve over a fund's life.

Dispersion across vintages and what 'good vintage' actually means once the market settles.

Dispersion across vintages and what 'good vintage' actually means once the market settles.

How private fund profits flow to LPs and GPs through the four standard tiers — return of capital, preferred return, catch-up, and carried interest.

Same trade-off as European vs. American waterfalls, framed from the GP's compensation perspective.

What the year-by-year view exposes that the aggregated view hides — accrued pref dynamics, refi mechanics, and how IRR builds over time.

Solicitation rules, accreditation verification, and why 506(c) raises tend to look slicker.

Solicitation rules, accreditation verification, and why 506(c) raises tend to look slicker.