First-time investors in private equity funds are often introduced to the J-Curve effect. This is the circumstance when early interim valuations of a private equity portfolio decline relative to the capital the investor has contributed. This can create considerable angst. LPs become very concerned that they have somehow lost value over the time they have funded capital calls. Why does this sometimes happen? How should limited partners look at this? And, how can the J-Curve be reduced?
In order to view premium content you need to be a Premium Subscriber. You can subscribe now to access premium online content.
Become a Premium SubscriberIf you are already a AltAssets subscriber please log in below.