Term: Investment period

In private equity the investment period is the agreed-upon number of years that a fund has to deploy its committed capital into investments. A typical investment period is five years. Capital that is not drown down during the investment period returns to the investors. GPs are judged on their ability to deploy most of the committed capital during the investment period. As in: I’m worried that those guys are getting pretty near the end of their investment period and they still have a ton of dry powder.

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