Private Equity Fund Structure
Heyo, dumb monkey here with a dumb question.
I was wondering why private equity funds have multiple vehicles/side pockets. For example, why would a PE firm have a Fund I-A and Fund I-B? Wouldn’t it make it much easier for everyone involved to just have a consolidated fund?
It is to accommodate various interests of different LPs. These sleeves (here Fund I-A / Fund I-B) can be denominated in different currencies, be set up in different jurisdictions, have different corporate structures. In general, it is to make LPs commitment as convenient as possible.
Gotcha, that makes sense. Thanks for the insight!
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