private equity fund structure A private equity fund structure typically involves a limited partnership (LP) framework, where the fund acts as the investment vehicle pooling capital from institutional investors, high-net-worth individuals, and other limited partners. The general partner (GP) manages the fund, making investment decisions and overseeing portfolio companies, while LPs provide capital but have limited liability. The fund lifecycle includes fundraising, investment, management, and exit phases, often spanning 10-12 years. Capital is drawn down from LPs as deals are identified, and returns are distributed after exits via IPOs, sales, or recapitalizations. The structure includes layers like management companies, advisory boards, and co-investment vehicles to optimize governance and tax efficiency. https://privateequitybro.com/private-equity-fee-structure/