The J-curve in Private Equity is a graphical representation of Private Equity Returns over time

The shape of J-Curve

  • At time 0: receives initial commitments
  • Early stage: pays management fees and invests in companies
  • Late stage: exits investments, returns > management fees

Mitigate the J-Curve by

  • joining a private equity fund a few years into its operation
  • through the secondary market (video #3)

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