In a typical private equity fund, investors are making capital commitments to a limited partnership that will be drawn down over a number of years at the direction of the general partner of the limited partnership. The structure of the typical private equity fund and the fact that investors have no liquidity once they make their investments in a fund means that investors are often concerned about what happens if things go wrong with the fund.

Read partner Omoz Osayimwese’s discussion of the various remedies investors typically negotiate for in a private equity fund.