Assume you are a financial analyst in an investment bank. You are currently reviewing the performance of some private equity funds so that you can provide advice to your clients. Below is the information of the private equity funds ACE I and KGC I.

Compare terms of funds and discuss how it could potentially impact the interests of GPs and LPs.

ACE I

Established in 2010				Type: Development Capital
Fund	Vintage	Actual Fund size (Millions)		Capital Called%	Management %	Carried Interest%	Hurdle Rate	Term	Report Date
ACE I	2013	300.0		90.0	1.0	20.0	10.0	2023	31/12/2018
Note: Clawback provision is included: Distribution water fall: Total return

ACE I	2013	2014	2015	2016	2017	2018
Called-down	120	40	40	20	10	40
Realised value	0	0	100	80	40	80
Unrealized value	-15	0	20	60	70	20
Distribution	0	0	60	65	60	60

KGC I

Established in 2011				Type: Development Capital
Fund	Vintage	Actual Fund size (Millions)		Capital Called%	Management %	Carried Interest%	Hurdle Rate	Term	Report Date
KGC I	2012	350.0		95.0	2.0	15.0	8.0	2024	31/12/2018
Note: Clawback provision is not included; Distribution water fall: Total return

KGC I	2013	2014	2015	2016	2017	2018
Called-down	130	50	50	40	20	30
Realised value	0	0	0	100	90	90
Unrealized value	0	-18	-5	80	40	30
Distribution	0	0	0	90	80	70