Questions tagged [private equity]

Bianca Thu Oct 10 2024 | 7 answers 1493

A waterfall in private equity refers to a profit distribution framework that determines how investment returns are allocated between limited partners (LPs) and general partners (GPs). It typically involves several steps, including the return of capital to LPs, the payment of preferred returns to LPs, catch-up provisionss for GPs, and the final distribution of remaining profits between LPs and GPs according to a specified ratio.

Riccardo Wed Oct 09 2024 | 5 answers 1205

I'm curious to know, what is the average fee structure for private equity investments? Do these fees typically include management fees, carried interest, or any other forms of compensation for the private equity firm managing the funds? How do these fees compare to other types of investment vehicles, and are they negotiable based on the specific terms of the investment?

Elena Wed Oct 09 2024 | 5 answers 1054

Excuse me, could you please elaborate on the concept of the "2-20 rule" in the context of private equity? I'm curious to understand the specifics of this industry standard and how it applies to the management fees and performance incentives for private equity fund managers. Could you also provide some insight into the rationale behind this rule and its potential impact on the industry?

SolitudeSeeker Wed Oct 09 2024 | 6 answers 1178

I'm curious to know, just how much does a Vice President (VP) in the private equity industry typically earn? Is there a significant range in salary depending on factors such as experience, the size of the firm, or the specific investment focus? And are there any other forms of compensation, such as bonuses or equity stakes, that are commonly included in a VP's overall compensation package? I'd appreciate any insights you can provide on this topic.

Dario Thu Sep 19 2024 | 7 answers 1391

Is it feasible for someone with a background in Financial Planning and Analysis (FP&A) to transition into the exciting world of private equity? I'm intrigued by the prospect of leveraging my financial acumen and analytical skills in a more investment-focused role. Could you elaborate on the potential pathways for such a career shift? Are there any specific skills or qualifications that would give me a competitive edge in making this transition? Additionally, what might be some of the challenges I could face, and how could I best prepare myself to overcome them?