Fundamentals: Simple answers to complex questions

August 18, 2020

What are Cash Flows Like for Private Market Funds?
Cash flows in private investing are very different than those on the public side. Learn more about the lifespan of a fund, commitments and distributions, and how different strategies can offer different cash flow patterns.

How do Private Market Fund Fees Work?
Private market funds charge two types of fees: a management fee and a performance fee. Learn about the differences and how the distribution waterfall works.

What are the Strengths of Different Private Fund Investment Strategies?
There are three main ways in which investors can access private market investments: primary investments, secondary investments, and co-investments. These strategies are complemented by other private market fund types, including private credit and real assets funds, which each have their own investment profiles. This piece explains the basics of each strategy.

How are Private Market Funds Structured?
Regardless of the strategy, most private market funds have similar structures that reflect the unique characteristics of private investments. Dive into what a limited partnership is and why a closed-end fund structure is crucial.

Keep reading

Continuation solutions encompass a host of transaction types in which a GP secures interim liquidity and/or additional primary capital for their LPs in a strongly performing asset, or set of assets, that the GP will continue to own and control. Specifically, they include continuation funds, new funds created by GPs for the purpose of acquiring the asset(s) that continue to be managed by the same GP and capitalized by one or several secondary buyers, or equity recapitalizations involving a direct equity or structured equity investment into a portfolio company. These transactions can also include a parallel investment from the GP’s latest fund into that same pool of assets (a “cross-fund trade”).