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distribution waterfall

Private Equity 101: How PE Funds Actually Work

September 12, 2026August 21, 2026 by Bruno
Private Equity 101: How PE Funds Actually Work

How PE funds are structured: GPs, LPs, 2-and-20, carried interest, hurdle rate, and the distribution waterfall — with a worked example on a $1B fund.

Categories Capital Markets, Market Education Tags carried interest, distribution waterfall, investing basics, leveraged buyouts, limited partners, private equity

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