DEFINITION of 'Equity Fund' A mutual fund that invests principally in stocks. It can be actively or passively (index fund) managed. See Index Fund

MONTIER CORPORATION MONTIER INTERNATIONAL SMITHSON-IHC GLOBENTAL GLOBENTAL INVESTMENTS Bon Appetite Gourmet Soup CAMLIN RESEARCH TECHNOLOGIES Pat's Gourmet Soups OMNI-IHC APOLLO PRIVATLY HELD -PROFITS ARE SHELTERD AT 5 % A YEAR Private Equity ___________ To understand how private equity firms really make money, you have to understand how the returns distribution waterfall works. The typical split in profits between LPs and GP is 80 / 20. That means, the LP gets distributed 80% of the profits ...

MONTIER CORPORATION MONTIER INTERNATIONAL SMITHSON-IHC GLOBENTAL GLOBENTAL INVESTMENTS Bon Appetite Gourmet Soup CAMLIN RESEARCH TECHNOLOGIES Pat's Gourmet Soups OMNI-IHC APOLLO PRIVATLY HELD -PROFITS ARE SHELTERD AT 5 % A YEAR Private Equity ___________ To understand how private equity firms really make money, you have to understand how the returns distribution waterfall works. The typical split in profits between LPs and GP is 80 / 20. That means, the LP gets distributed 80% of the profits on an exit (after returning their initial capital) and the GP keeps 20% of the profits. This 20% is known as “carried interest,” or “carry.” The carry is then split up between the PE firm’s investment professionals, with most of the distributions going to the partners, while the LPs then divvy up the 80% they received based on their proportional contribution to the fund. Now typically, a GP will only commit 1-5% of the capital of the fund; my firm contributed about 10%, which was extraordinarily high by industry standards. So think about it: the GP contributes 1-5% of the fund (or perhaps 10% at the extreme), but they get to keep 20% of the profits. That’s how private equity firms are able to reap such enormous returns What is 'Equity Compensation' Equity compensation is non-cash pay that represents ownership in the firm. This type of compensation can take many forms, including options, restricted stock and performance shares. Equity compensation allows the employees of the firm to share in the profits via appreciation and can encourage retention, particularly if there are vesting requirements. Carried interest is a contractual right that entitles the general partner of a private investment fund (often a private equity fund) to share in the fund’s profits (figure 1). A fund typically uses the carried interest to pass through its net capital gains to the general partner which, in turn, passes the gains on to the investment managers. The managers pay a federal personal income tax on these gains at a rate of 23.8 percent (20 percent tax on net capital gains plus 3.8 percent investment tax). ___ Apollo * Globental Decentralized Currency is primarily in the private sector, also providing funding for gov’t assist Infrastructure projects and municipal funding, on a stellar scale as one of this solar system’s largest privately funded institution. APOLLO ^^^ STRATTON___patented and code copyright digital money --- out stellar NDCC -National Digital Currency Corporatio