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Category: Private Equity

Understanding American and European Equity Waterfall Models and Their Impact On Carried Interest

European Equity

In the realm of private equity and venture capital, comprehending the intricacies of equity waterfall models is crucial. Both the American and European waterfall models influence how and when general partners (GPs) receive carried interest, a core element in these investment domains. This article delves into these models to understand their structure, advantages, and implications. […]

Understanding the Catch-Up Period in Private Equity: A Comprehensive Guide for LPs and GPs

private equity

Private equity (PE) funds often include intricate compensation structures to align the interests of both limited partners (LPs) and general partners (GPs). One key aspect of this structure is the “catch-up period,” which dictates how profits are distributed between the LPs and GPs after the initial returns. Understanding the mechanics of the catch-up period, especially […]