Silo Category Hub

Private Equity Hub

Understand PE deal returns, LBOs, capital calls, carried interest, MOIC, IRR, and interview case-study logic.

Guided learning progression

Step 1

Private Equity

Private equity involves investing directly in private companies or taking public companies private, with the goal of improving operations and selling for profit.

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Step 2

Leveraged Buyout

An LBO is the acquisition of a company using a significant amount of borrowed money (debt) to meet the purchase cost, with the company's assets often serving as collateral.

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Step 3

Internal Rate of Return

IRR is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

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Step 4

Distribution Waterfall

A distribution waterfall is the method by which private equity and hedge fund distributions are allocated between limited partners (LPs) and the general partner (GP) in a specific sequence.

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Hub concepts directory

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Internal Rate of Return (IRR)

IRR is the discount rate that makes the net present value (NPV) of all cash flows from a particular project equal to zero.

Distribution Waterfall

A distribution waterfall is the method by which private equity and hedge fund distributions are allocated between limited partners (LPs) and the general partner (GP) in a specific sequence.

Private Equity

Private equity involves investing directly in private companies or taking public companies private, with the goal of improving operations and selling for profit.

Leveraged Buyout (LBO)

An LBO is the acquisition of a company using a significant amount of borrowed money (debt) to meet the purchase cost, with the company's assets often serving as collateral.

Related tools & models

MOIC CalculatorTranslate entry and exit values into investment multiple.IRR CalculatorConvert PE cash-flow timing into an annual return.PE Waterfall CalculatorSimulate preferred return and carried interest.

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