PitchBook Analyst Note: The Fine Print: Unraveling Fund Fees and Terms

Limited partnership agreements (LPAs) are long, complex documents often summarized for investors or their fiduciarily responsible committees with a few key bullet points. These summaries by necessity leave out the language found deeper in the term paragraphs, but the nuances matter—sometimes more than the signers realize. This note walks through, in words and calculations, some of the trickier clauses in an LPA that affect financial outcomes. We hope to better inform investors why LPA terms such as fees, investment period, recycling provisions, and hurdle rates are worth paying more attention to than they may have done previously.