PEINVEST
An investment vehicle that allocates capital across multiple PE funds rather than investing directly in companies. Fund of funds provide diversification across managers, strategies, and vintage years, making PE accessible to smaller institutional investors.
An investor in a PE fund who provides capital but has limited involvement in fund management and investment decisions. LPs include pension funds, sovereign wealth funds, endowments, insurance companies, family offices, and high-net-worth individuals.
The year in which a PE fund makes its first investment or holds its initial closing. Vintage year is critical for benchmarking because macroeconomic conditions at the time of deployment significantly influence fund returns.
The time window during which a PE fund's general partner can make new investments, typically the first 3-5 years of the fund's life. After the commitment period expires, the GP can only make follow-on investments in existing portfolio companies.