This course provides a clear and practical introduction to Private Equity fund structures and the key mechanisms that drive profit distribution within investment funds. It is designed for learners who want to understand how private equity firms organize capital, share returns, and align incentives between investors and fund managers.
Students will explore Private Equity fund structures in detail, including how capital is raised, pooled, and deployed across investments. The course explains the role of General Partners (GPs) and Limited Partners (LPs), and how their relationship defines the governance of private equity funds.
A key focus of the course is Carried Interest, one of the most important compensation mechanisms in private equity. Learners will understand how fund managers earn performance-based returns, how carried interest is calculated, and why it plays a central role in incentivizing investment performance.
The course also explains Clawback provisions, which are designed to protect investors by ensuring that excess payments to fund managers are adjusted if long-term fund performance does not meet expectations. Real-world examples from private equity real estate and fund management are used to simplify these concepts.
By the end of the course, learners will have a strong understanding of how private equity funds operate, how profits are distributed, and how investor protectio
