Private Equity Hub
Understand PE deal returns, LBOs, capital calls, carried interest, MOIC, IRR, and interview case-study logic.
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Hub concepts directory
Click any element to see exact definitions, formulas, and real-world examples.
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.
Commodities
Commodities are raw materials or primary agricultural products that can be bought and sold, including energy, metals, agriculture, and livestock.
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.
Hedge Funds
Hedge funds are pooled investment vehicles that employ diverse strategies — including leverage, derivatives, and short selling — to generate returns for accredited investors.
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.
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.
REITs (Real Estate Investment Trusts)
REITs are companies that own, operate, or finance income-producing real estate, offering investors exposure to real estate without direct property ownership.
Real Estate Investment
Real estate investing involves purchasing property for rental income, appreciation, or development — accessible via direct ownership, REITs, or private funds.
Clawback - Beginner Guide
Clawback is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
LP Commitment - Beginner Guide
LP Commitment is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
RVPI - Beginner Guide
RVPI is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
LBO Model - Beginner Guide
LBO Model is a key Excel/Modeling concept used to build a clear foundation in practical finance workflows.
Real Estate Fund - Beginner Guide
Real Estate Fund is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Relative Value - Beginner Guide
Relative Value is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Private Equity - Beginner Guide
Private Equity is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Secondaries - Beginner Guide
Secondaries is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Platform Investment - Beginner Guide
Platform Investment is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Investment Committee Memo - Beginner Guide
Investment Committee Memo is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Waterfall Chart - Beginner Guide
Waterfall Chart is a key Excel/Modeling concept used to build a clear foundation in practical finance workflows.
Direct Lending - Beginner Guide
Direct Lending is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Hedge Fund - Beginner Guide
Hedge Fund is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Net IRR - Beginner Guide
Net IRR is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Exit Strategy - Beginner Guide
Exit Strategy is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Recycling Provision - Beginner Guide
Recycling Provision is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Hedge Fund Strategy - Beginner Guide
Hedge Fund Strategy is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
NOI - Beginner Guide
NOI is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Waterfall - Beginner Guide
Waterfall is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Capital Call - Beginner Guide
Capital Call is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Mezzanine Debt - Beginner Guide
Mezzanine Debt is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Sponsor to Sponsor Sale - Beginner Guide
Sponsor to Sponsor Sale is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Preferred Return - Beginner Guide
Preferred Return is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Long Short Equity - Beginner Guide
Long Short Equity is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Real Estate Cap Rate - Beginner Guide
Real Estate Cap Rate is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Venture Capital - Beginner Guide
Venture Capital is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Distressed Debt - Beginner Guide
Distressed Debt is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Distribution - Beginner Guide
Distribution is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Fund of Funds - Beginner Guide
Fund of Funds is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
MOIC - Beginner Guide
MOIC is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Co Investment - Beginner Guide
Co Investment is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Gross IRR - Beginner Guide
Gross IRR is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Carried Interest - Beginner Guide
Carried Interest is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
GP Commitment - Beginner Guide
GP Commitment is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
IRR - Beginner Guide
IRR is a key Valuation concept used to build a clear foundation in practical finance workflows.
Due Diligence Questionnaire - Beginner Guide
Due Diligence Questionnaire is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Unfunded Commitment - Beginner Guide
Unfunded Commitment is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Data Room - Beginner Guide
Data Room is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Global Macro - Beginner Guide
Global Macro is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
DPI - Beginner Guide
DPI is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Vintage Year - Beginner Guide
Vintage Year is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Interest Rate Risk - Beginner Guide
Interest Rate Risk is a key Fixed Income concept used to build a clear foundation in practical finance workflows.
TVPI - Beginner Guide
TVPI is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Limited Partnership Agreement - Beginner Guide
Limited Partnership Agreement is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Subscription Agreement - Beginner Guide
Subscription Agreement is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Occupancy Rate - Beginner Guide
Occupancy Rate is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Event Driven - Beginner Guide
Event Driven is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Same Store NOI - Beginner Guide
Same Store NOI is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
J Curve - Beginner Guide
J Curve is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Infrastructure Fund - Beginner Guide
Infrastructure Fund is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Key Person Clause - Beginner Guide
Key Person Clause is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
LBO - Beginner Guide
LBO is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
IRR Rule - Beginner Guide
IRR Rule is a key Corporate Finance concept used to build a clear foundation in practical finance workflows.
Catch Up - Beginner Guide
Catch Up is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
NAV - Beginner Guide
NAV is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Private Credit - Beginner Guide
Private Credit is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Add On Acquisition - Beginner Guide
Add On Acquisition is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Side Letter - Beginner Guide
Side Letter is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Management Fee - Beginner Guide
Management Fee is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Strategic Sale - Beginner Guide
Strategic Sale is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
IPO Exit - Beginner Guide
IPO Exit is a key Alternative Investments concept used to build a clear foundation in practical finance workflows.
Infrastructure Fund - Practical Example
Infrastructure Fund is a key Alternative Investments concept used to connect theory to real numbers in practical finance workflows.
Clawback - Practical Example
Clawback is a key Alternative Investments concept used to connect theory to real numbers in practical finance workflows.
Investment Committee Memo - Practical Example
Investment Committee Memo is a key Alternative Investments concept used to connect theory to real numbers in practical finance workflows.
Private Credit - Practical Example
Private Credit is a key Alternative Investments concept used to connect theory to real numbers in practical finance workflows.
RVPI - Practical Example
RVPI is a key Alternative Investments concept used to connect theory to real numbers in practical finance workflows.
NOI - Practical Example
NOI is a key Alternative Investments concept used to connect theory to real numbers in practical finance workflows.
Subscription Agreement - Practical Example
Subscription Agreement is a key Alternative Investments concept used to connect theory to real numbers in practical finance workflows.
Data Room - Practical Example
Data Room is a key Alternative Investments concept used to connect theory to real numbers in practical finance workflows.
Same Store NOI - Practical Example
Same Store NOI is a key Alternative Investments concept used to connect theory to real numbers in practical finance workflows.
Vintage Year - Practical Example
Vintage Year is a key Alternative Investments concept used to connect theory to real numbers in practical finance workflows.
Private Equity - Practical Example
Private Equity is a key Alternative Investments concept used to connect theory to real numbers in practical finance workflows.
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