PEINVEST
The return of capital and profits from a PE fund to its limited partners. Distributions can take the form of cash proceeds from the sale of portfolio companies or, less commonly, in-kind distributions of securities.
A performance metric that measures the cumulative distributions returned to investors relative to the total capital they have contributed to the fund. A DPI of 1.0x means LPs have received back their entire investment; above 1.0x indicates profit has been distributed.
The hierarchical structure governing how fund profits are distributed between LPs and the GP. The waterfall typically includes return of contributed capital, preferred return (hurdle rate), GP catch-up, and then a carried interest split, ensuring LPs are prioritized before the GP earns carry.
A notice issued by a fund's general partner to limited partners requiring them to contribute a portion of their committed capital. Capital calls are typically made when the fund identifies an investment opportunity or needs to cover management fees and expenses.
A provision requiring the general partner to return previously distributed carry if the fund's overall performance fails to meet the specified return threshold by the end of the fund's life. The clawback ensures that GPs earn carry only on the fund's aggregate performance, not on individual deals.