Distribution
Private Equity glossary · Private Equity Fundamentals
Definition
A cash payment from the fund to LPs.
Distribution in plain English
A distribution is just cash the fund pays back out to its investors — the 'LPs,' or limited partners, are the outside people and institutions whose money the fund invested in the first place. When the fund sells a company or collects profits, it hands that cash back to those investors, and that payment is the distribution. Think of it like a group investment club finally selling a house it fixed up and mailing each member their share of the proceeds; the check in the mail is the distribution.
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