Private-Market Capital Commitments and Performance

This branch groups private-fund commitment and performance terms that are commonly interpreted together in private equity and venture capital.

In this section

• Capital Commitment: Total Agreed Investment Amount
  Capital Commitment refers to the total amount an investor agrees to provide over the life of an investment, primarily in private equity or venture capital funds.
• Net Internal Rate of Return: The Investor's IRR After Fees and Carry
  Learn what net internal rate of return means, how it differs from gross IRR, and why private-market investors care about the after-fee result.
• Private Internal Rate of Return
  Learn what private internal rate of return means in private-market investing and why sponsor timing and cash-flow patterns heavily influence it.
• Profits Interest: Definition, Usage, and Comparison to Capital Interest
  An in-depth exploration of profits interest in partnerships, including definitions, usage, and comparisons to capital interest.
• Realization Multiple: Definition, Calculation, and Importance in Private Equity
  A detailed look at the realization multiple, explaining its significance in private equity, its calculation, and how it provides insights into investment performance.
• Waterfall Structure: Priority of Distributions in Private Equity
  A comprehensive exploration of the Waterfall Structure used in private equity to outline the priority of distributions, including historical context, types, key events, mathematical models, charts, importance, applicability, examples, related terms, and FAQs.