Private Equity Terms (Not categorized)

Question 1

clawback

Answer 1

Gives LPs the protection GPs don’t earn more than agreed upon.

Question 2

accelerated distribution

Answer 2

Allowed GPs to receive capital gains as long as the

portfolio’s value“hurdle rate,” of invested capital

Question 3

Over-distribution

Answer 3

situation where the GPs have received more than the agreed upon carry.

Question 4

committed capital

Answer 4

pledged capital, LPs obligate themselves to capital investment

Question 5

Capital call

Answer 5

formal request for committed capital or draw down

Question 6

APV

Answer 6

Adjusted Present Value -