Private Equity Mechanics

Private equity relies on two primary levers to generate outsized equity returns: financial leverage (debt) and structural asymmetry (the GP/LP waterfall). This domain covers the core arithmetic.

LBO Mechanics

The math behind debt paydown, multiple expansion, and EBITDA growth.

GP/LP Fund Structures

How capital is committed, drawn, and returned.

Carry Waterfalls

European vs American waterfalls, catch-ups, and clawbacks.

Value Creation Bridges

Attributing equity return to operational vs financial engineering.