DANCEST 805 Lecture Notes - Lecture 9: Private Equity Firm, In Private, Management Fee
Document Summary
Iapm s8: private equity part 1 what is private equity. Investments made from calling on capital already committed by investors. No requirement to redeem investors" interests upon requests exists through listing of shares of investee company or through structured sale (buy back of fund"s equity interest by investee company. Strategic decisions on which firm to buy income. 200,000$ in each prior years (or 300,000 with spouse) + expectation of making at least same next year. Iapm s8 week5: how private equity funds work. 3. 1 structure: structured as private limited partnerships preferred structure: ability to accommodate both pensions and non-pension investors, favourable tax treatment + legal precedent and familiarity. General partners: responsible for day to day management of partnership"s investment, as well as general liability. In-kind distributions: stock distributions; often returned to limited partners after general p has exited from an investment.