TYPICAL PE FUND
The fund vehicle is normally a limited partnership.
The investors are typically pension schemes,
Life insurers, corporate investors, University endowment schemes.
Individual investors are a very small minority.
The general partner structured as a company
or LLP and is responsible for running the partnership. It receives
a share of profits/fee reflecting its costs. Much of it work is
delegated to the advisory entity.
The advisory entity a company or LLP located
in main country of business activity. The advisor receives a share
of profits or fees from the General Partner. There may also be
local subsidiaries in other countries where the fund makes substantial
Carry and Co investment
Carry and co investment represents investments
by employees and partners alongside the fund. Typically there
will be a carry or co investment vehicle but this is only normally
used to simplify administration.
The investment in portfolio companies represents
investment in equity and debt as required.