The returns from the exit strategies are distributed back to the investors. Usually this period can take up to 10 or more years.
Investment return
Distributions
10+ year fund life
After a period of several years, thanks to active management from the General Partner, the various Portfolio Companies have increased their value and the private equity fund can sell its stake. Various exit strategies include trade sales or listing on public markets.
Value creation
Exits
3 - 5 year realization period
The Private Equity Fund aggregates investor capital and identifies promising companies to invest in. The fund manager or General Partner takes an equity stake in multiple Portfolio Companies. These benefit not only from capital but also active financial management to improve performance.
General Partner
Investments
4 - 6 year investment period
Subscriptions
6 to 12 month
marketing period
A private equity fund looks for investment and opens for subscriptions. Various types of individuals or institutions invest in the fund in the hope of earning financial returns over the next 10 or more years. The investors are known as Limited Partners.
Limited Partners
Private Equity Fund
Pension Funds
Governments
Insurance Companies
High Net Worth Individuals
Family Offices
Corporations
Charitable Foundations
Endowments
10+ year fund life
3 - 5 year realization period
4 - 6 year investment period
6 to 12 month marketing period
Pension Funds
Governments
Insurance Companies
High Net Worth Individuals
Family Offices
Corporations
Charitable Foundations
Endowments
Private Equity Fund
Portfolio Company
Portfolio Company
Portfolio Company
Portfolio Company
Pension Funds
Governments
Insurance Companies
High Net Worth Individuals
Family Offices
Corporations
Charitable Foundations
Endowments
Private Equity Fund
Portfolio Company
Portfolio Company
Portfolio Company
Portfolio Company
IPO
Trade Sale
Recap
Income
Limited Partners
General Partner
Limited Partners
General Partner
Investments
Limited Partners
General Partner
Investments
Exits
PE funds aggregate capital from investors to invest in a portfolio of different companies that they actively select and manage.
Pension Funds
Governments
Insurance Companies
High Net Worth Individuals
Family Offices
Corporations
Charitable Foundations
Endowments
Private Equity Fund
Portfolio Company
Portfolio Company
Portfolio Company
Portfolio Company
IPO
Trade Sale
Recap
Income
Limited Partners
General Partner
Investments
Exits
Pension Funds
Governments
Insurance Companies
High Net Worth Individuals
Family Offices
Corporations
Charitable Foundations
Endowments
Limited Partners
General Partner
Private Equity Fund
Investments
Private Equity Fund
Pension Funds
Governments
Insurance Companies
High Net Worth Individuals
Family Offices
Corporations
Charitable Foundations
Endowments
Limited Partners
General Partner
Private Equity Fund
Investments
Portfolio Company
Portfolio Company
Portfolio Company
Portfolio Company
Exits
Portfolio Company
Portfolio Company
Portfolio Company
Portfolio Company
Pension Funds
Governments
Insurance Companies
High Net Worth Individuals
Family Offices
Corporations
Charitable Foundations
Endowments
Limited Partners
General Partner
Private Equity Fund
Investments
Portfolio Company
Portfolio Company
Portfolio Company
Portfolio Company
Exits
IPO
Trade Sale
Recap
Income
6 to 12 month marketing period
4 - 6 year investment period
3 - 5 year realization period
10+ year fund life
Pension Funds
Governments
Insurance Companies
High Net Worth Individuals
Family Offices
Corporations
Charitable Foundations
Endowments
Private Equity Fund
Limited Partners
General Partner
Limited Partners
6 to 12 month
marketing period
Subscriptions
A private equity fund looks for investment and opens for subscriptions. Various types of individuals or institutions invest in the fund in the hope of earning financial returns over the next 10 or more years. The investors are known as Limited Partners.
Pension Funds
Governments
Insurance Companies
High Net Worth Individuals
Family Offices
Corporations
Charitable Foundations
Endowments
Private Equity Fund
Portfolio Company
Portfolio Company
Portfolio Company
Portfolio Company
Limited Partners
General Partner
Investments
The Private Equity Fund aggregates investor capital and identifies promising companies to invest in. The fund manager or General Partner takes an equity stake in multiple Portfolio Companies. These benefit not only from capital but also active financial management to improve performance.
General Partner
Investments
4 - 6 year investment period
Pension Funds
Governments
Insurance Companies
High Net Worth Individuals
Family Offices
Corporations
Charitable Foundations
Endowments
Private Equity Fund
Portfolio Company
Portfolio Company
Portfolio Company
Portfolio Company
IPO
Trade Sale
Recap
Income
Limited Partners
General Partner
Investments
Exits
After a period of several years, thanks to active management from the General Partner, the various Portfolio Companies have increased their value and the private equity fund can sell its stake. Various exit strategies include trade sales or listing on public markets.
Value creation
Exits
3 - 5 year realization period
Pension Funds
Governments
Insurance Companies
High Net Worth Individuals
Family Offices
Corporations
Charitable Foundations
Endowments
Private Equity Fund
Portfolio Company
Portfolio Company
Portfolio Company
Portfolio Company
IPO
Trade Sale
Recap
Income
Limited Partners
General Partner
Investments
Exits
Distributions
Investment return
10+ year fund life
The returns from the exit strategies are distributed back to the investors. Usually this period can take up to 10 or more years.
PE funds aggregate capital from investors to invest in
a portfolio of different companies that they actively select and manage.