When you see a private equity fund structure chart with a thousand triangles, circles and rectangles, what is the best way to analyze wtf is going on? They all look so similar so what should I be focusing on when I see this behemoth?

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Start with the legend to orient yourself. Those charts look overwhelming, but how much of it you actually need to understand depends on why you’re looking at it. Most of the time you only need to focus on one small section at a time.

For example, if you’re just trying to identify who the LPs are in an offshore feeder/sleeve, you only need to look at that part of the chart. Same if you’re trying to figure out which portfolio companies sit below the main fund, or whatever. First figure out WHY you’re looking at the chart, then break it down into sections instead of trying to understand the whole thing at once.

likehelpfulsmart

The legend helps and so does understanding tax treatment of certain vehicles. There’s also so many trainings and secondary resources to learn the basics

likehelpful

Most likely it would be explained in the tax section of the PPM.

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It depends. What practice group are you in?

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I hope he’s not in funds talking like this. 😭 hopefully just a private equity first year who is seeing a pro forma structure chart for a platform

likehelpful

First don’t panic with exp it becomes second nature. Have tax folks mids explain things

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