Key terms and definitions for private equity, real estate, and private debt fund management.
20 terms across 9 categories
Regulatory requirements that fund managers must follow to verify investor identities and screen for sanctions, politically exposed persons, and illicit financial activity.
The process of verifying that a fund's operations, investor onboarding, and reporting meet regulatory requirements across all applicable jurisdictions.
The process of monitoring whether borrowers in a private debt portfolio are meeting the financial and operational conditions required by their loan agreements.
The total value of a fund's assets minus its liabilities, calculated per share or per unit to determine what each investor's stake is worth.
A tiered payout structure that determines the order and proportion in which fund profits are distributed between LPs and GPs.
The share of fund profits (typically 20%) that the GP earns as performance-based compensation after returning LP capital and meeting preferred return thresholds.
The minimum annualized return (typically 6-8%) that LPs must receive before the GP earns any carried interest.
A formal notice from a GP to LPs requesting the transfer of committed capital to fund investments, fees, or expenses.
The operational backbone of a private fund — encompassing accounting, NAV calculation, investor reporting, compliance, and regulatory filings.
The total amount of capital an LP pledges to a fund, which is drawn down over time through capital calls as investments are made.
The legal and operational process of structuring and launching a new private fund — including entity setup, documentation, regulatory filings, and initial fundraising.
The legal document an investor signs to commit capital to a fund, containing their investment amount, representations, and eligibility certifications.
An investor in a private fund who contributes capital but has no role in day-to-day management, with liability limited to their committed investment.
The fund manager responsible for making investment decisions, managing operations, and reporting to LPs, who bears unlimited liability for the fund.
A secure, branded web platform where LPs access fund documents, performance reports, capital account balances, and communications from the GP.
A technology platform that a fund manager deploys under their own brand — with their logo, colors, and domain — while a third-party provider supplies the underlying infrastructure.