PEINVEST
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 entity responsible for managing a PE fund, making investment decisions, and overseeing portfolio companies. The GP typically contributes 1-5% of total fund capital and receives management fees and carried interest as compensation.
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.
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 direct investment made by limited partners alongside a private equity fund in a specific portfolio company. Co-investments typically carry reduced or no management fees and carried interest, providing LPs with additional exposure to attractive deals at lower cost.