Browse CFA Level 1

Chapter 12: Private Markets Fundraising and Capital Flows

In this section

  • Limited Partnership Agreements and Terms
    Explore the foundations of Limited Partnership Agreements (LPAs), understand key clauses like fee structures, governance, and distribution waterfalls, and discover how alignment of interests and industry best practices can shape outcomes for General Partners and Limited Partners.
  • Capital Calls, Distributions, and Waterfall Structures
    Explore the core processes behind LP capital calls and private equity distribution waterfalls, including schedules, preferred returns, and catch-up provisions.
  • Fundraising Cycles and Investor Relations
    Explore how private market GPs navigate fundraising cycles, manage investor relationships, and secure anchor commitments in a dynamic market environment.
  • Secondary Markets and Portfolio Rebalancing
    Explore how secondary market transactions provide liquidity for private fund interests and facilitate portfolio rebalancing, covering discounts, due diligence, and best practices.
  • Subscription Lines and Fund Leverage
    Learn how subscription credit facilities function, explore their potential benefits and pitfalls, and understand their impact on private fund performance metrics.
  • Syndication Strategies and Co-Investment Options
    Explore syndication partnerships, co-investment mechanics, risk-sharing benefits, and governance considerations within private markets fundraising and capital flows.
  • Institutional vs. Retail LP Structures
    Exploring institutional investor dominance, growing retail participation, and the nuances of structuring private market funds for both sophisticated and individual capital providers.
  • ESG and Impact-Focused Funds
    Explore how ESG and impact-focused funds shape private markets fundraising, alter capital flows, and drive both financial and societal returns.
  • Investor Communication and Reporting Standards
    Explore best practices for transparent communication in private markets, including ILPA reporting templates, key performance metrics, and strategies for fostering trust between general partners and limited partners.
  • Role of Placement Agents and Feeder Funds
    In-depth exploration of how placement agents and feeder funds facilitate capital raising in private markets, from compensation structures to cross-border solutions.
  • Crowdfunding and Online Capital Platforms
    A comprehensive look at how crowdfunding has reshaped early-stage financing and the regulatory implications, introducing beginners and seasoned investors alike to emerging online capital-raising frameworks.
  • Thematic and Sector-Focused Funds
    Exploring specialized investment approaches that concentrate on specific themes or sectors, discussing risk, due diligence, GP expertise, and real-world applications.
  • Regulatory Filings and Public Disclosures
    An in-depth exploration of how private funds comply with regulatory filing obligations, navigate disclosure requirements, and manage investor transparency and systemic risk.
  • Long-Dated and Evergreen Fund Structures
    An in-depth exploration of extended fund lifespans and open-ended models in private markets, detailing their structure, benefits, challenges, and alignment with long-term investment strategies.
  • Emergency Financing and GP Commitments
    Explore how emergency financing mechanisms and GP commitments help manage liquidity crises, bridging loans, and align GP-LP interests in private markets fundraising.
  • Diversification Strategies in LP Portfolios
    Learn how LPs can enhance portfolio resilience and optimize returns by diversifying their private market commitments across multiple vintages, geographies, sectors, and specialized fund types.
Wednesday, April 9, 2025 Monday, January 1, 1

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