ROC
also known as: return of capital
What 'return of capital' actually returns, and how aggressive sponsors widen the definition.
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Return of Capital: The First Tier →5 min read · waterfalls
Related terms
- Return Of CapitalWhat 'return of capital' actually returns, and how aggressive sponsors widen the definition.
- Distribution WaterfallHow private fund profits flow to LPs and GPs through the four standard tiers — return of capital, preferred return, catch-up, and carried interest.
- Fee ScheduleThe seven fee families that show up in a typical PPM, where each lands in the cash flow, and what's market vs. aggressive.
- Fund FeesThe seven fee families that show up in a typical PPM, where each lands in the cash flow, and what's market vs. aggressive.
- HurdleTypical 6–9% bands, simple vs. compounded, accrual vs. current pay — the hurdle the GP has to clear before they earn carry.
- Hurdle RateTypical 6–9% bands, simple vs. compounded, accrual vs. current pay — the hurdle the GP has to clear before they earn carry.
- PrefTypical 6–9% bands, simple vs. compounded, accrual vs. current pay — the hurdle the GP has to clear before they earn carry.
- Preferred ReturnTypical 6–9% bands, simple vs. compounded, accrual vs. current pay — the hurdle the GP has to clear before they earn carry.