Chapter 12: Private Markets Fundraising and Capital Flows

In this section

• Limited Partnership Agreements and Terms
  Limited Partnership Agreements and Terms (CFA Level 1): Key Components of an LPA, Fund Objectives and Strategy, and Lifespan, Extensions, and Termination. Key definitions, formulas, and exam tips.
• Capital Calls, Distributions, and Waterfall Structures
  Capital Calls, Distributions, and Waterfall Structures (CFA Level 1): Mechanics of Capital Calls, Timing and Frequency, and Call Schedules and LP Obligations. Key definitions, formulas, and exam tips.
• Fundraising Cycles and Investor Relations
  Fundraising Cycles and Investor Relations (CFA Level 1): Pre-Marketing and Planning, Active Fundraising, and Post-Close Relationship Management. Key definitions, formulas, and exam tips.
• Secondary Markets and Portfolio Rebalancing
  Secondary Markets and Portfolio Rebalancing (CFA Level 1): Key Terms, Why Secondary Markets Exist, and Drivers of Secondary Transactions. Key definitions, formulas, and exam tips.
• Subscription Lines and Fund Leverage
  Subscription Lines and Fund Leverage (CFA Level 1): Closer Look at Subscription Credit Facilities, How Do These Facilities Work?, and Why Bother with These Lines?. Key definitions, formulas, and exam tips.
• Syndication Strategies and Co-Investment Options
  Syndication Strategies and Co-Investment Options (CFA Level 1): Role and Mechanics of Syndication, Diagram of a Typical Syndicated Transaction, and Co-Investment Opportunities. Key definitions, formulas, and exam tips.
• Institutional vs. Retail LP Structures
  Institutional vs. Retail LP Structures (CFA Level 1): Key Distinctions Between Institutional and Retail LPs, Why Institutional Investors Continue to Dominate, and Retail Investors’ Pathways to Private Markets. Clear examples and common exam pitfalls.
• ESG and Impact-Focused Funds
  ESG and Impact-Focused Funds (CFA Level 1): ESG vs. Impact: Understanding the Distinction, Rise of ESG in Private Markets, and Regulatory and Reporting Pressures. Key definitions, formulas, and exam tips.
• Investor Communication and Reporting Standards
  Investor Communication and Reporting Standards (CFA Level 1): Core Communication Principles, Standardized Reporting Frameworks, and Key Performance Metrics. Key definitions, formulas, and exam tips.
• Role of Placement Agents and Feeder Funds
  Role of Placement Agents and Feeder Funds (CFA Level 1): Big-Picture Context, Many Hats of Placement Agents, and What They Do. Key definitions, formulas, and exam tips.
• Crowdfunding and Online Capital Platforms
  Crowdfunding and Online Capital Platforms (CFA Level 1): Crowdfunding in Private Markets, Types of Crowdfunding, and Regulatory Landscape. Key definitions, formulas, and exam tips.
• Thematic and Sector-Focused Funds
  Thematic and Sector-Focused Funds (CFA Level 1): Defining Thematic vs. Sector-Focused Funds, Concentration Risk and Potential Return, and Why Go Thematic or Sector-Focused?. Key definitions, formulas, and exam tips.
• Regulatory Filings and Public Disclosures
  Regulatory Filings and Public Disclosures (CFA Level 1): Importance of Regulatory Filings, Key Regulatory Frameworks, and United States: Form ADV. Key definitions, formulas, and exam tips.
• Long-Dated and Evergreen Fund Structures
  Long-Dated and Evergreen Fund Structures (CFA Level 1): Key Features and Motivations, Long-Dated Funds, and Evergreen Funds. Key definitions, formulas, and exam tips.
• Emergency Financing and GP Commitments
  Emergency Financing and GP Commitments (CFA Level 1): Bridging Loans and Their Mechanisms, Managing Default Risk and Capital Calls, and Significance of GP Commitments. Key definitions, formulas, and exam tips.
• Diversification Strategies in LP Portfolios
  Diversification Strategies in LP Portfolios (CFA Level 1): Why Diversification Matters for LPs, Vintage Diversification, and Spreading Commitments Over Multiple Years. Key definitions, formulas, and exam tips.