Explain how LPs, GPs, the LPA, fees, carry, and fund life affect private-equity behavior.
The fund is the first layer of the investment case. A private-equity deal looks like a company decision, but it is also a fund decision. The GP is choosing how to deploy LP capital under a mandate, a timetable, and a set of economics. Roles LPs commit capital and accept illiquidity. The GP makes investment decisions, manages the portfolio, and communicates performance. Because LPs are passive on individual assets, trust is built through mandate discipline, disclosure, and realized outcomes. Economics Management fees pay for the firm and carry rewards gains. That does not make every GP short-term, but it does…
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