![]() ![]() This is the only date for which there will likely be a public record. The entity name search webpage can be found here. If you’re not an investor of the fund, most US private equity funds are formed as Delaware limited partnerships, so you can go to the entity name search page of the State of Delaware website to look up the fund. If you want to determine the date of legal formation for a fund, you can find it in the limited partnership agreement or in the footnotes to the fund’s audited financial statements. This is because of the legal costs involved in forming the entity and preparing the limited partnership agreement. When is a fund legally formed? Usually not until the manager is highly confident that they will have an initial closing. Let’s first start by exploring a fund’s timeline of its early activities: But which definition is right? Or is there more than one possible definition? ![]() ![]() Industry participants use one (or more) of the above to determine vintage year. The year that the fund manager says it is.The year of the fund’s initial investment.The year of the first capital call from limited partners.The year when the fund has its initial closing (of limited partner commitments).The year when the fund was legally formed.There are several options for what a private equity fund’s vintage year could be: So depending on what vintage year the fund is determined to have, it can be either a top quartile or second quartile performer. If it is a 2013 or 2014 vintage fund, it is a second quartile performer. If it is a 2012 vintage fund, it is a top quartile performer (which is every fund manager's objective). Based on the chart above, if the fund's vintage year is 2011, it would be a second quartile performer. Recall our hypothetical fund had a net IRR as of Septemof 18.5%. ![]()
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