Private Equity Fund Structure

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  • Опубліковано 27 вер 2024

КОМЕНТАРІ • 108

  • @Michael25ycl
    @Michael25ycl 27 днів тому +128

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  • @totianagarcia8491
    @totianagarcia8491 9 місяців тому +1

    Finally, but what I would love is an explanation of this using Journal Entries😅

  • @ericcartmansh
    @ericcartmansh 7 місяців тому +1

    Wow, quite the pivot for Bill Haider to go from SNL, Barry to now financial tutorials!

    • @ASimpleModel
      @ASimpleModel  7 місяців тому

      Tried to get a job as Bill Hader's stunt double. But emotional stunts only. Like if he's getting yelled at in a scene. No dice. So financial tutorials it is... :)

  • @phonicstory
    @phonicstory 9 місяців тому +1

    Hey Peter, can you also show us the calculation of dividend distribution among GP and LP

  • @vicahmed221
    @vicahmed221 Рік тому +21

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      @Alexedmartin. Рік тому

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      @Alexedmartin. Рік тому

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      @vicahmed221 Рік тому

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      @emeldcentor1474 Рік тому

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      @rosekaplan219 Рік тому

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  • @Mis-AdventureCH
    @Mis-AdventureCH Рік тому +1

    Ok, so for clarity. The "GP LLC" sounds like it is merely an entity that assumes responsibility / power of attorney as per the PPM / LPA documents. It then recieves the distributions as per waterfall structure. Kind of a shell corporation to house the GP's interest and legal authority which then conduits the waterfall to ther checking account (say) when investments mature and produce dividennd, etc.
    The "Mgt Company LLC" entity is where the actual operational staff live. Humans, at desks. That's where the analysts sit, the FIN/ADMIN person sits, the GP who says yes or no to things, etc. Actual paychecks eminate from this entity. The admin assistant, the coffee maker, the CFO, COO, the Series 65 RIA person, etc, etc.
    In this model the GPs will actually be the incorporator of this entity and if required register with SEC as a RIA.

  • @lmondrag83
    @lmondrag83 2 роки тому +2

    I am structuring a private equity fund, and I really needed all this vocab in English. Thanks so much, very clear all your explanations.

    • @ASimpleModel
      @ASimpleModel  2 роки тому

      Hi! The detailed notes that support this video are available as part of this curriculum: www.asimplemodel.com/financial-curriculum/private-equity/ Hope you find it useful!

  • @ophie7565
    @ophie7565 Рік тому

    Very helpful intro, thank you!

  • @R5410-b6d
    @R5410-b6d 3 роки тому

    Peter - this was detailed but explained clearly

    • @ASimpleModel
      @ASimpleModel  3 роки тому

      Thanks for commenting! Much Appreciated.

  • @totallytrading3165
    @totallytrading3165 7 місяців тому

    awesome!!! Thank you for explaining

  • @sumanthkumar8254
    @sumanthkumar8254 2 місяці тому +1

    Thanks for the video

  • @lucatintor4896
    @lucatintor4896 3 роки тому +4

    Super video about PE introduction, very clear and simple to start.

    • @ASimpleModel
      @ASimpleModel  3 роки тому

      Thanks Luca! Should you be interested, you can find some more introductory information at the following link: www.asimplemodel.com/model/88/introduction-to-private-equity/how-private-equity-works/ (this also has notes available for download)

  • @zoranploscar8229
    @zoranploscar8229 3 місяці тому

    Can this same approach be applied to real estate, as a debt fund using the property as collateral (non equity position)?

  • @amonifinau4048
    @amonifinau4048 5 місяців тому +1

    Thank you!

  • @harryfied47
    @harryfied47 2 роки тому +3

    Great content, am working as a private equity fund accountant and we come across all these everyday.

    • @ManuGupta
      @ManuGupta 2 роки тому

      Quick question: Deal Team, Accounting, Treasury etc all employees of the PE firm - they are part of Management Company, right? their salaries/bonuses should reflect in Management Company accounting.?

  • @yasaswiniprasad9213
    @yasaswiniprasad9213 2 роки тому +1

    Hey Peter.. I was searching for material to know about private equity. Your video was the best and simple...

    • @ASimpleModel
      @ASimpleModel  2 роки тому

      Thank you for writing! Always find these comments motivating :)

  • @jaydeepsinh6429
    @jaydeepsinh6429 3 роки тому +1

    Very helpful.. Thankyou!

  • @missm2587
    @missm2587 2 роки тому +1

    Works in a hedge fund industry and recently starts exposing to the PE and these videos help me to understand Private Equity so much. Please continue making videos with great and knowledgeable contents! I love them!

  • @daisydd1709
    @daisydd1709 11 місяців тому

    How is the PE return va volatility comparing to S&P

  • @sallyjohnson9504
    @sallyjohnson9504 6 місяців тому

    Well said

  • @AplleNoob
    @AplleNoob Рік тому

    What is the difference in GP and Mgmt. Team? What are their tasks and responsibilities?

    • @ASimpleModel
      @ASimpleModel  Рік тому +2

      Great question. I have a new video coming up on this topic. Should be posted in the next couple of weeks.

    • @saniabhalla8148
      @saniabhalla8148 Рік тому

      ​@@ASimpleModelhas the video came on this topic?

  • @adon228
    @adon228 Рік тому

    This is a great video.

  • @p10rambo
    @p10rambo 2 роки тому

    Is clearlake capital a private equity firm?

  • @laurenczin
    @laurenczin 3 роки тому

    Great video!

  • @andihoxha6766
    @andihoxha6766 2 роки тому +1

    Hi,
    Can you please give some literature on this topic, which goes more in detail. Thank you!

    • @ASimpleModel
      @ASimpleModel  2 роки тому +1

      Hi, you can find more detail on the website. Its part of the ASM+ PRO tier, which includes the Private Equity Training course: www.asimplemodel.com/financial-curriculum/private-equity hope that helps!

  • @rightright6582
    @rightright6582 2 роки тому

    Did u say that the GP makes 20% of the entire fund?

    • @ASimpleModel
      @ASimpleModel  2 роки тому

      Hi! This example might help clear it up: ua-cam.com/video/80Ij5ZOWhg8/v-deo.html (in this example its 20% of "profit") There's also a slower explanation here: www.asimplemodel.com/financial-curriculum/financial-modeling/leveraged-buyout/distribution-waterfall

  • @TheMarmite09
    @TheMarmite09 2 роки тому

    Wish you would slow down! Are you reading from a script?
    😊

    • @ASimpleModel
      @ASimpleModel  2 роки тому

      Hi! The private equity training materials come with detailed PDF notes so that subscribers can move forward at their own pace :) I get a lot of comments about pace (too slow, too fast, etc), unfortunately really difficult to please everyone, but that's why we add the notes to the curriculum.

  • @chackothomas8929
    @chackothomas8929 3 роки тому +3

    Peter, I love your videos! These are amazing! Please keep making these!

    • @ASimpleModel
      @ASimpleModel  3 роки тому

      Thanks Chacko! We are working on a full private equity series and hope to have it up soon!

  • @cementman69
    @cementman69 3 роки тому +2

    Great, simple and to the point. would you please make one about hedge fund incubators, how are they established and taxed.
    thanks.

    • @ASimpleModel
      @ASimpleModel  3 роки тому

      thank you! we still have a ways to go on the private equity front, but once we are further along on that front we may move on to public equities and hedge funds.

  • @sandyk419
    @sandyk419 3 роки тому

    I think mngt co and gp are same ? Am i right

    • @ASimpleModel
      @ASimpleModel  3 роки тому

      Great question! The management company is generally affiliated with the GP, but they are not the same entity. The GP will enter into a management agreement (or investment advisory agreement) with the management company. Under this agreement the fund pays the management company fees to employ the investment team, evaluate opportunities, manage the portfolio and manage all day-to-day operations.
      This is a common structure that allows the management company to work across multiple funds while still having a GP for each fund. It is not uncommon to see a private equity firm scale and raise new funds in the process. Over time the same management company could be affiliated with a handful of funds (GPs).
      The management company owns the firms branded assets and intellectual property, which include the name of the firm, the track record and any proprietary processes the firm has developed. This helps the management company raise new funds and allows it to build goodwill across funds.

    • @ASimpleModel
      @ASimpleModel  3 роки тому

      I really enjoyed your thought-provoking question, and thought it deserved a post. For future reference: www.asimplemodel.com/reference/141/private-equity-fund-structure-gp-and-management-company/ (summary available in my second comment on this thread)

  • @bhavanagangishetty6907
    @bhavanagangishetty6907 3 роки тому +1

    Great Peter..your videos are soo helpful.

    • @ASimpleModel
      @ASimpleModel  3 роки тому

      Thank you! Appreciate you taking the time to write.

  • @leefunk
    @leefunk 3 роки тому +1

    nice work! Thank you so much.

    • @ASimpleModel
      @ASimpleModel  3 роки тому

      Thanks for commenting! Glad you enjoyed it.

  • @luckieguru
    @luckieguru 3 роки тому

    Peter- thanks for the Video, but you are very fast, it would be great to take notes if you are little slow....

    • @ASimpleModel
      @ASimpleModel  3 роки тому

      Hi Lakshman, many of the videos I post to UA-cam are part of a curriculum available on ASimpleModel.com. These videos have typed notes available for download so that you can move at your own pace, but it is part of a subscription service (subscriber content: www.asimplemodel.com/model/103/introduction-to-private-equity/private-equity-fund-structure/). I try to keep prices low in an effort to eliminate cost as a deterrent to education. The PE Training curriculum is currently priced at $14 / month.

    • @TheEveryDayAngel
      @TheEveryDayAngel 3 роки тому

      you can also slow down the playback speed ( example: from 1X to .5x)

    • @girishbhatia6810
      @girishbhatia6810 2 роки тому

      Yes agreed with the comments. Be little slow to make the notes on the topic.

  • @SuperBuktus
    @SuperBuktus 3 роки тому +2

    Hi Peter, love your content. What is the purpose of having the management company and the GP in separate entities?

    • @ASimpleModel
      @ASimpleModel  3 роки тому +3

      Thanks! And great question. This is a common structure that allows the management company (aka fund manager, investment advisor) to work across multiple funds while still having a GP for each fund. It is not uncommon to see a private equity firm scale and raise new funds in the process. Over time the same management company could be affiliated with a handful of funds (GPs). Hope that helps!

    • @SuperBuktus
      @SuperBuktus 3 роки тому +1

      @@ASimpleModel Great answer! Much appreciated =)

  • @ifcastillo7414
    @ifcastillo7414 3 роки тому +1

    Nicely done! Thank you.

  • @annapurnabonakurthi9174
    @annapurnabonakurthi9174 3 роки тому

    I would like to subscribe ASM.how it will help me for my career and interview.plz suggest.thanks

    • @ASimpleModel
      @ASimpleModel  3 роки тому

      Hi! Thanks for commenting. The content on ASM is designed to help with careers in investment banking and private equity. Please feel free to send me an email via the contact page if you have more specific questions!

  • @saiadithya1
    @saiadithya1 2 роки тому

    Hi, Peter In the video you have mentioned you will be providing notes, however I couldn't find any link for the P.E notes. Can you pls provide the link for the notes in description or as a reply to my comment.

    • @ASimpleModel
      @ASimpleModel  2 роки тому

      Hi Sai, most of the notes for this series are part of the Private Equity Training curriculum available at ASM (www.asimplemodel.com/model/10/introduction-to-private-equity/). The first two are free, but after that it requires a subscription. We strive to be the most affordable option available. A monthly subscription is currently $20 / month and can be cancelled at any time. Thanks for checking out the channel!

  • @llarraify
    @llarraify 3 роки тому +1

    Thank you, this was very useful. And how does the interest/profit for the investors come into the picture (org chart, and flows)?

    • @ASimpleModel
      @ASimpleModel  3 роки тому +4

      thanks for the comment! while it doesn't cover management fees the video on the distribution waterfall covers in detail how investors benefit from upside (ua-cam.com/video/BKH_W2RuTxk/v-deo.html) I am working on something for the fees as well :)

    • @llarraify
      @llarraify 3 роки тому

      @@ASimpleModel Thank you very much ❤

  • @beyondhim...ididitsocanyou1651

    omg your look, is the a pitta me of a hedge fund manager

  • @sunnygadge350
    @sunnygadge350 2 роки тому +1

    Mardi gras

    • @ASimpleModel
      @ASimpleModel  2 роки тому

      I definitely prefer mardi gras to private equity structures...

  • @timothybracken1728
    @timothybracken1728 Рік тому +10

    Finally, someone who explains it in a way where I understand

  • @hecelolita1542
    @hecelolita1542 3 роки тому +1

    Thank you!

  • @dretrader1
    @dretrader1 4 місяці тому

    Hi, what is the porfolio fee range that the mgmt co charges the portfolio company?

  • @LaddDentalGroup
    @LaddDentalGroup Рік тому +1

    Fantastic overview!! Thanks for the content

  • @mezzwrld2589
    @mezzwrld2589 4 місяці тому +1

    really informative

  • @failedkirby618
    @failedkirby618 3 місяці тому +1

    This is well made

  • @SunilSingh-lz2vk
    @SunilSingh-lz2vk Рік тому +1

    Good Stuff.

  • @lavencompound
    @lavencompound 3 роки тому +1

    A+ video

  • @mym8330
    @mym8330 2 роки тому

    Slowly

  • @banihas22
    @banihas22 4 роки тому +2

    Thanks for the content Peter! Any plans to work on modelling content for project finance?

    • @enricoquinzani7432
      @enricoquinzani7432 4 роки тому

      Not exactly a PF course, but should help

    • @ASimpleModel
      @ASimpleModel  4 роки тому

      Hi Amir! Thanks for the comment. At the moment we are focused on private equity content. We should have new lessons up on the site within the next couple of weeks. I will keep this in mind as we explore new topics next. Thanks again!

  • @hobissprite928
    @hobissprite928 2 роки тому +23

    I like how you address us as “team.” It makes me feel more engaged while learning. Thank you for the videos!

    • @ASimpleModel
      @ASimpleModel  2 роки тому +2

      Absolutely, glad you enjoy them. Certainly hope we're a team, otherwise its just me talking to a camera lens...

  • @startupsfedora639
    @startupsfedora639 2 роки тому +2

    Amazing tutorials!
    Thank you so much

  • @lynnjr.1842
    @lynnjr.1842 2 роки тому +1

    I couldn’t help but notice the books in the background. Is there any literature out there you can recommend us reading? Maybe do a video on books you find informative as well, lol?

    • @ASimpleModel
      @ASimpleModel  2 роки тому +1

      Love this idea! Will explore it. Thank you!

  • @miguelalvarado1440
    @miguelalvarado1440 Рік тому

    Thank you my friend.
    Now I see the whole picture!!!
    Well Explained!!!!