A fund that invests across private and public markets — backing a company in its late <em>private</em> rounds and holding it through and after the IPO.
The contractual order in which a fund splits cash from exits between LPs and the GP — return of capital, preferred return, catch-up, then the <em>carry</em> split.
The recurring fee — conventionally about 2% a year — that funds the GP's operating costs, paid regardless of whether the fund's <em>investments</em> succeed.
A structure where the GP earns carried interest on each profitable exit, rather than waiting until the whole fund returns capital. The <em>American waterfall</em>.
Multiple on Invested Capital — total value returned and held divided by capital invested. It answers <em>how many times your money came back</em>, ignoring time.
The waterfall tier where, after the preferred return, the GP takes a heavy share of profit until it has <em>caught up</em> to its full carry percentage.