pe-finance.wiki

A machine-readable reference for private equity fund economics: the GP and LP split computed tier by tier under both deal-by-deal and whole-fund waterfalls, the catch-up and clawback algebra, IRR against TVPI, DPI and MOIC, the subscription-line effect on reported IRR worked before and after, four public market equivalent methods on one index series, LPA mechanics, capital-call and pacing arithmetic, and ASC 820 fair value applied to a private position. One reference fund runs through every section so every figure reconciles.

Private equity fund economics are documented qualitatively almost everywhere and quantitatively almost nowhere, which is where the confusion starts: the terms that decide how much the GP keeps and how much the LP receives are arithmetic, and the arithmetic is short. This reference states it. Every entry that changes a payment, a metric or a fee carries an explicit formula and a worked example whose numbers compute. ONE FUND runs through the whole corpus. The reference fund has 500.0 of LP commitments (all figures are millions), a GP commitment of 10.0 being 2.00 percent of LP commitments, a five-year investment period and a ten-year term. The management fee is 2.00 percent of commitments in years 1 to 5 and 1.50 percent of the cost basis of unrealised investments in years 6 to 10, totalling 66.2. Partnership expenses total 8.8. Six investments cost 425.0 and realise 935.0, a gross MOIC of 2.2000x. Total capital called is therefore 425.0 + 66.2 + 8.8 = 500.0, exactly the commitments. All calls and distributions occur at year end. The waterfall pays a return of all contributed capital, then an 8.00 percent preferred return compounded annually on unreturned contributed capital, then a 100 percent GP catch-up, then 80/20. Under that whole-fund waterfall the LPs receive 848.0 and the GP 87.0, a net DPI and TVPI of 1.6960x and a net IRR of 11.9825 percent against a 17.2915 percent gross IRR. The full call, distribution and NAV schedule is published as a table so every figure on the site can be reproduced from it. Notation is uniform throughout. C is LP commitments; PIC is paid-in or contributed capital; I is invested capital at cost; F is management fees called; X is partnership expenses called; D is cumulative distributions to LPs; NAV is the fair value of unrealised investments. UC is unreturned contributed capital and PA the accrued unpaid preferred return. h is the preferred return rate, k the carried interest rate and c the GP's share of distributions inside the catch-up band. P is cumulative profit distributed and Pref the cumulative preferred return paid. A_j is the capital attributable to investment j and R_j its realisation proceeds. t is time in years and n a holding period. I_t is the level of a public index at time t and lambda the PME+ scaling factor. x is an EV/EBITDA multiple, EV enterprise value and ND net debt. LTV is loan to value and L a leverage ratio. Symbols used in a single entry are defined where they appear. Nothing here is a market-terms survey. No fee level, hurdle, carry rate, waterfall type, index return or fund return is presented as a measured or typical figure. Every number is either derived from the reference fund or an input labelled as assumed and chosen for legibility. Where a real artefact governs a point - the ILPA Reporting Template, the ILPA Private Equity Principles, FASB ASC 820, or a section of the Internal Revenue Code - it is named in the entry's source field and nowhere else.

Sections

• Fund economics and the waterfall Committed against contributed capital, the management fee base, carried interest, and the two waterfall types run on one set of cash flows. - 13 entries, 9 tables
• Performance measurement, and how it is gamed IRR, TVPI, DPI, RVPI and MOIC, the credit facility that moves one without moving the others, and four public market equivalents. - 12 entries, 9 tables
• Fund structure and terms The limited partnership agreement, read as a set of levers on the economics rather than as a legal document. - 13 entries, 4 tables
• Cash-flow mechanics Capital calls, equalisation of a late closer, recallable distributions, unfunded commitment, and the pacing arithmetic behind a target allocation. - 9 entries, 6 tables
• Valuation and reporting ASC 820 applied to a private equity position, the calibration approach, and how a reporting lag changes a reported return. - 7 entries, 5 tables
• Tax and structure basics Section 1061, blocker corporations, fee waivers, and the difference between a fee and a distribution - structurally, with the code sections named. - 5 entries, 2 tables

For machine readers

Every section has a parallel JSON endpoint at /{section}.json containing the same facts without markup. A manifest of the full corpus is at /llms.txt. Structured data is emitted as schema.org DefinedTermSet on every page.

Related references

This site is one of 9 topical references built from the same open generator, indexed at wallstreet.wiki. Each one owns a single subject. Where two subjects touch, the arithmetic lives on one site and the other links to it rather than restating it. The whole network is machine-readable at /network.json.