LP playbook
The LP playbook: judging a fund by the cash it returns, and the terms that protect you
This hub is for the investor side of a private fund: which performance measures show cash returned rather than paper gains, what a good result should look like, and how governance rights and side terms work in practice. It asks what the numbers really say and who the terms really protect.
What readers ask
- Is DPI the same as TVPI?
- What is a good DPI for private equity?
- Is 2x TVPI good?
- What is the purpose of an LPAC?
- Who typically requests a side letter?
- What does MFN clause mean?
In preparation
- Paid, or just marked up? DPI, TVPI and RVPI in one worked example
- DPI is the new IRR: why LPs stopped trusting the headline number
- What is a good DPI? The benchmark an LP should hold a Fund III to
- What an LPAC actually decides, and the liability its members carry
- The reference call that decides it: how LPs really choose a manager
- The denominator effect: the month your private equity allocation breaks policy without a single new commitment
- Most favoured nation clauses: the side letter term that is rarely what it says