Category: Vellis News
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How Do Capital Calls Work In Private Equity?
Capital calls are a core mechanism in private equity fund management. When Limited Partners (LPs) commit capital to a fund, they don’t pay the full amount upfront. Instead, General Partners (GPs) issue capital calls, and formal requests for LPs to transfer a portion of their committed funds as needed.
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Carried Interest in Private Equity: Who It Benefits and How It Works
Carried interest is a central incentive mechanism in private equity, designed to reward general partners (GPs) for delivering strong fund performance. It gives GPs the right to earn a portion of the fund’s profits, usually after surpassing a predefined performance hurdle, aligning their interests with those of the limited partners (LPs) who supply the capital.
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What Is an Escrow Account in Private Equity?
In private equity, an escrow account is a key financial mechanism used to hold funds or assets in a secure, neutral space until specific conditions are fulfilled. It helps manage risk and build trust between parties during critical moments like fund closings, acquisitions, or exits.
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Private Equity Due Diligence Checklist
Due diligence is a vital step in any private equity transaction, serving as the foundation for assessing risk and validating key investment assumptions. It’s a deep-dive investigation that spans financial performance, legal compliance, operational health, and commercial viability, essentially everything that could make or break a deal.
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Subscription Line of Credit Private Equity Explained
A subscription line of credit is a short-term loan used by private equity (PE) funds to access cash quickly without immediately calling capital from limited partners (LPs). It helps general partners (GPs) act fast on deals while streamlining capital calls.
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Exploring NAV Lending in Private Equity
Private equity is a game of long-term value creation, but even the most patient strategies need short-term liquidity. That’s where NAV lending for private equity comes in.
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Accounts Payable Automation in Private Equity
In the fast-paced world of private equity, managing financial operations across multiple portfolio companies is no easy feat. Among the most burdensome tasks is accounts payable (AP).
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How to Do Taxes as a Freelancer? A Beginner’s Guide
For many freelancers, managing taxes is one of the most stressful parts of the job. Unlike traditional employees, freelancers don’t have payroll departments deducting taxes automatically or sending annual summaries with everything calculated for them.
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How Freelancers Can Accept Crypto Payments?
As a freelancer, getting paid quickly, securely, and without borders is the dream. That’s why freelance crypto payment methods are becoming a go-to option for professionals working with international clients.
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8 Best Payment Method for Freelancers
Freelancers thrive on flexibility – not just in how they work, but also in how they get paid. Whether you’re a graphic designer in Manila or a developer in Berlin, getting your hard-earned money quickly and safely matters.