Private Equity Partnership
Investment Phase Payout Phase
General Partner put up
1% of capitalGeneral Partner get carried
interest in 20% of profits
Limited
partners put in99% of capital
Limited
partners getinvestment
back, then 80%of profitsInvestment in
portfolio ofdiversified
companiesSale or IPO of
companiesPartnership PartnershipCompany 1
Company 2Company NMgmt fees