Why would an LP invest their money in a fund?

Been researching more about PE and keep seeing posts about fund returns that barely benchmark the S&P500. Given this + the liquidity issue, what incentive is there for an LP to give money to a fund?

1 Comments
 

Dolorem reprehenderit a iste magnam non rem omnis culpa. Nihil commodi ut vero facere quibusdam quia. Necessitatibus ex iste hic et.

Vitae est cupiditate animi nihil consectetur esse voluptatibus. Nisi et vel ut. Similique debitis sed laboriosam officia est repellat. Quia sint et consectetur voluptas odit ipsum. Deleniti aspernatur distinctio perferendis esse. Quam consequatur velit ipsa aut et beatae.

 
Most Helpful

Omnis quidem expedita ratione deserunt odit. Voluptatum aut dolorem nemo eligendi molestiae et vero. Voluptas natus minima aut sit explicabo. Est accusamus optio sunt occaecati.

Mollitia qui delectus debitis et id officiis consequatur. Sunt numquam maxime similique voluptas id. In nihil alias sed quos in voluptas.

Dolorum minima ut itaque laboriosam sequi. Animi consequatur dolor ipsa enim impedit est et. Distinctio repellendus et labore voluptatibus modi sit et. Rem et qui non et et. Ut et totam est ea qui.

Amet quis blanditiis quis voluptatem modi id qui. Consequatur dolore iste ducimus quia saepe assumenda ut. Beatae animi occaecati ut modi officiis.

Career Advancement Opportunities

June 2026 Private Equity

  • The Riverside Company 99.6%
  • Blackstone Group 99.2%
  • KKR (Kohlberg Kravis Roberts) 98.9%
  • Warburg Pincus 98.5%
  • Bain Capital 98.1%

Overall Employee Satisfaction

June 2026 Private Equity

  • KKR (Kohlberg Kravis Roberts) 99.6%
  • The Riverside Company 99.2%
  • Ardian 98.9%
  • Blackstone Group 98.5%
  • Starwood Capital Group 98.1%

Professional Growth Opportunities

June 2026 Private Equity

  • Bain Capital 99.6%
  • The Riverside Company 99.2%
  • Blackstone Group 98.9%
  • Starwood Capital Group 98.5%
  • KKR (Kohlberg Kravis Roberts) 98.1%

Total Avg Compensation

June 2026 Private Equity

  • Principal (9) $653
  • Director/MD (24) $547
  • Vice President (97) $363
  • 3rd+ Year Associate (104) $281
  • 2nd Year Associate (234) $272
  • 1st Year Associate (411) $229
  • 3rd+ Year Analyst (33) $157
  • 2nd Year Analyst (95) $134
  • 1st Year Analyst (271) $124
  • Intern/Summer Associate (38) $81
  • Intern/Summer Analyst (352) $61
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
kanon's picture
kanon
99.0
4
Secyh62's picture
Secyh62
99.0
5
CompBanker's picture
CompBanker
98.9
6
DrApeman's picture
DrApeman
98.9
7
dosk17's picture
dosk17
98.9
8
Betsy Massar's picture
Betsy Massar
98.9
9
GameTheory's picture
GameTheory
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”