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Private-Market Capital Commitments and Performance

Private-market terms for capital commitments, private IRR, net IRR, realization multiples, waterfalls, and carried economics.

Private-Market Capital Commitments and Performance terms explain investments in non-public companies, private funds, early-stage financing, sponsor-led deals, capital commitments, exits, and private-market access rules.

Use this branch when investor eligibility, capital calls, lockups, valuation method, sponsor economics, exit path, or private-transaction structure changes the investment decision.

Key Terms in This Branch

TermUse it for
Capital CommitmentPrivate equity, venture, angel, crowdfunding, eligibility, capital-commitment, mezzanine, tax-vehicle, or exit terms.
Net Internal Rate of ReturnPrivate equity, venture, angel, crowdfunding, eligibility, capital-commitment, mezzanine, tax-vehicle, or exit terms.
Private Internal Rate of ReturnPrivate equity, venture, angel, crowdfunding, eligibility, capital-commitment, mezzanine, tax-vehicle, or exit terms.
Profits InterestPrivate equity, venture, angel, crowdfunding, eligibility, capital-commitment, mezzanine, tax-vehicle, or exit terms.
Realization MultiplePrivate equity, venture, angel, crowdfunding, eligibility, capital-commitment, mezzanine, tax-vehicle, or exit terms.
Waterfall StructurePrivate equity, venture, angel, crowdfunding, eligibility, capital-commitment, mezzanine, tax-vehicle, or exit terms.

What to Check

Check the offering documents, investor eligibility, capital commitment, lockup, liquidity limits, fees, carried interest, valuation method, tax treatment, governance rights, and expected exit path.

Common Mistakes

  • Treating private-market returns as directly comparable to daily priced public securities.
  • Ignoring capital-call obligations, lockups, valuation lag, and limited liquidity.
  • Reading IRR or multiples without checking cash-flow timing and fees.
  • Assuming eligibility or access means the investment is suitable.

Private investments can be illiquid, restricted, and complex; this page is educational and is not investment, legal, or tax advice.

In this section

Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.

Capital Commitment

Capital Commitment refers to the total amount an investor agrees to provide over the life of an investment, primarily in private equity or venture capital funds.

Net Internal Rate of Return

Net Internal Rate of Return is a private-market finance concept used to evaluate non-public companies, funds, transactions, or investor liquidity.

Private Internal Rate of Return

Private Internal Rate of Return is a private-market finance concept used to evaluate non-public companies, funds, transactions, or investor liquidity.

Profits Interest

Profits Interest is a private-market finance concept used to evaluate non-public companies, funds, transactions, or investor liquidity.

Realization Multiple

Realization Multiple is a private-market finance concept used to evaluate non-public companies, funds, transactions, or investor liquidity.

Waterfall Structure

Waterfall Structure is a private-market finance concept used to evaluate non-public companies, funds, transactions, or investor liquidity.

Revised on Sunday, June 21, 2026