For most private equity funds the general partner does not earn an incentive fees until the limited partners have received their initial investment back?? What it means.can u please explain it with example
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for ex- if a person has invested 100m in private equity and the general partner earned 20% on it making it 120m but then also the general partner will not get incentive fee until the limited partner has received is initial investment back which is 100m in profits .
hope it helps