EQT ThinQ Education Series
Short, well-written explainers from EQT on how private equity funds are structured and measured: limited partnerships, fees and carry, IRR versus MOIC, hurdle rates, co-investments and funds of funds.
Free to read
EQT's ThinQ publication mixes opinion pieces, portfolio stories and an Education section. The education pieces are among the best short explainers on private equity mechanics: each one takes a single concept and works through it with numbers.
What Is a Private Equity Fund covers the limited partnership structure, the general partner's own commitment (traditionally 1 to 5 percent), the roughly ten-year closed-end life, management fees historically near 2 percent and trending lower, 20 percent carried interest above a hurdle, the fundraising process and the role of LP advisory committees. What Does IRR Mean in Private Equity shows why the same $100 million turning into $250 million gives about a 20 percent IRR over five years but only about 12 percent over eight, which is the clearest way to see why IRR and MOIC can tell different stories. Other pieces explain co-investments, funds of funds and the stages of private equity.
Read the fund and IRR pieces before your first private equity model or LP meeting. They are written for general readers but are accurate enough for professionals.
Start with
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1
What is a Private Equity Fund?
Covers the full fund lifecycle, the economics and governance in one piece.
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2
What Does IRR Mean in Private Equity?
A worked example of IRR versus MOIC and how hurdle rates decide carry.
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3
What Is a Co-investment?
Explains why LPs invest directly alongside GPs and what concentration risk they take on.