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Four short newsletters, written in plain English and sourced line by line. Pick the ones you want and how often. Education only, never a tip.

A taste

What an issue looks like

An illustrative Term Sheet Tuesday. Hypothetical, like every example we use.

Term Sheet Tuesday|Sample

The catch-up

After LPs get their capital back plus the hurdle (often 8% a year), the catch-up sends most or all of the next profits to the GP until the GP has caught up to its agreed share of profits, typically 20%. After that, profits are split 80/20 again.

Kai“Without it, the hurdle would quietly cut my carry. The catch-up just restores the deal we agreed.”

Leo“Fine, but a 100% catch-up means the hurdle protects me less than it sounds. I’ll ask whether it’s full or partial.”

Illustrative explanation; terms vary by fund. For background see ILPA, Principles 3.0 (2019). Education only, not investment advice.