Private Markets Glossary

Minority equity investments in alternative asset management firms

Trading of pre-existing private fund interests

Vehicles that invest across multiple private funds

Internal rate of return net of fees and carry

Total value to paid-in capital ratio

Distributions to paid-in capital ratio

Net asset value of a fund portfolio

Negative early returns before performance improves

The year a fund begins investing

GP request for LP capital contribution

Committed but undeployed capital

GP's share of fund profits (typically 20%)

Annual fees charged by the GP (typically 1.5-2%)

Converting private fund interests into blockchain tokens

How oracles price illiquid private market assets