Private Equity (PE) illustrates the illiquid investments or securities that are not publicly traded on an exchange, for example venture capital, mezzanine or distressed debt, leveraged buyouts, lumber, petroleum and gas properties, and real estate. A limited partnership arrangement (LPA) defines the limitations and conditions of relationship between General Partners and Limited Partners.
The structural and compensation steps used by PE firm are standardized and working knowledge of terms and arrangements is important to comprehend the apportionment of profits and the driving forces behind revenue in industry.
This note describes some of the elementary characteristics of LPAs with a specific concentrate on the fundamental terminology and damage practices that connect to LPs and GPs.
The Basics of Private Equity Funds case study solution
PUBLICATION DATE: May 26, 2015 PRODUCT #: UV6986-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING