PE Fund Economics Archives | Private Equity Bro

How Modern LPAs Handle Cross-Fund Investments

3 September 2026

A general partner rarely needs permission to like a company twice. The harder question is what happens when the same…

How Modern LPAs Handle Investment Period Extensions

2 September 2026

For Investment Period Extensions in LPAs, more time to invest and more time to exit are separate requests, and modern…

GP Clawback Escrow Reserve in Private Equity

1 September 2026

A GP clawback escrow reserve can turn part of a contractual repayment promise into cash that is already segregated. Without…

How Subscription Lines Inflate Reported IRRs

31 August 2026

A fund buys a business for $100m and sells it three years later for $200m. If the general partner called…

Performance-Based Vesting in Management Equity Plans

25 August 2026

A manager can hit every operating target, stay for the full hold period and still walk away with a fraction…

How to Negotiate Your PE VP Promotion Package

24 August 2026

The promotion to private equity (PE) Vice President changes what you are paid for. As a senior associate, you were…

NAV Loan vs Preferred Equity for PE Fund Liquidity

22 August 2026

A NAV loan borrows against the net asset value of a fund’s underlying portfolio. A preferred equity solution sells a…

Intercreditor Agreements Explained: How Lenders Set Priority and Control

28 July 2026

An intercreditor agreement is a contract among creditor groups that allocates lien priority, payment rights, enforcement control, and collateral proceeds…

Real Estate Waterfall: How Sponsor and Investor Returns Are Split

11 July 2026

A real estate waterfall is the contractual sequence in which cash proceeds from a property, portfolio, fund, or joint venture…

OID vs. Upfront Fees: How Debt Financing Costs Differ

29 June 2026

Original issue discount, or OID, is a debt pricing mechanism where a lender funds less than the stated principal at…

Investor Presentation vs. Pitch Book: Key Differences in Fundraising Materials

6 June 2026

An investor presentation is a concise, sponsor-branded deck built for live delivery. It explains an investment opportunity to prospective limited…

Gross IRR vs. Net IRR: What’s the Difference for Investors?

21 May 2026

Gross IRR and net IRR are two of the most important return metrics in private markets, but they answer different…

Asset Management Fees in Real Estate: How They Work

10 May 2026

An asset management fee in real estate is the recurring charge paid to a sponsor, manager, or adviser for managing…

Debt Service Reserve Accounts (DSRA): How They Protect Project Finance

3 April 2026

A debt service reserve account, or DSRA, is a restricted cash account, or an equivalent letter of credit facility, sized…

Preferred vs. Common Equity in PE Deals: Key Differences Explained

29 March 2026

Preferred equity is an equity instrument with negotiated economic seniority over common, usually through a liquidation preference, a current-pay or…

Equity Waterfall Watermark and Catch-Up: How Returns Are Distributed

28 March 2026

An equity waterfall is the ordered priority of cash distributions from realized proceeds in a private equity fund or structured…

Distribution Waterfalls in Property Funds: How Returns Are Split

26 March 2026

A distribution waterfall in a property fund is the contractually defined sequence that determines how cash is split between investors…

J‑Curve Dynamics in Real Estate Funds: Causes, Timing, and Mitigation

9 March 2026

J-curve dynamics for real estate funds describe a predictable pattern: net cash flows and reported net asset value (NAV) start…

CRE CLOs Explained: What They Are and How They Work

12 February 2026

A commercial real estate collateralized loan obligation (CRE CLO) is a securitization backed by a pool of floating-rate commercial real…

GP vs. LP Commitment Splits: How Much Skin Should GPs Have?

21 January 2026

A general partner commitment is the capital a fund manager and its principals invest in their own fund, typically structured…

What Placement Agents Actually Do in Private Equity Fundraising: A Clear Breakdown

7 January 2026

A placement agent is a regulated intermediary that advises and markets private funds to institutional investors in exchange for fees…

Catch-Up Management Fees in Private Equity: What They Are and How They Work

5 January 2026

A catch-up management fee is a retroactive payment made by a limited partner joining a private equity fund after the…

Underwriting Spread in Private Equity: Definition, Economics, and Deal Impact

29 December 2025

An underwriting spread in private equity is the difference between the price a sponsor initially commits to pay for an…

Replacement Reserves in Property Funds: What They Are and How They Work

21 December 2025

Replacement reserves are cash set-asides within property funds that cover predictable future capital expenditures like roofs, HVAC systems, elevators, and…

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