[Verse 1] Private equity starts with a dream and a plan General partners seek capital from institutional hands Pension funds and endowments line up to invest Limited partners bringing money to the test Ten year commitment is the typical way Structure's established for the long-term play [Chorus] Three phases moving, fundraise invest and harvest F-I-H that's how the money travels farthest General partners managing, limited partners funding Private equity lifecycle keeps the wheel turning F-I-H, F-I-H, remember these three That's how private equity sets the companies free [Verse 2] Fundraising phase comes first in the line Marketing the strategy, terms they define Target fund size and the management fee Two percent annual, that's what you'll see Carried interest twenty, when profits are shared Legal documents signed when investors have declared [Chorus] Three phases moving, fundraise invest and harvest F-I-H that's how the money travels farthest General partners managing, limited partners funding Private equity lifecycle keeps the wheel turning F-I-H, F-I-H, remember these three That's how private equity sets the companies free [Verse 3] Investment period lasting three to five years General partners hunting for deals that are clear Due diligence checking every detail they find Portfolio companies chosen with growth in mind Capital calls sent when the money's required Building value up till the exit's desired [Bridge] Fund administrators keeping books clean and tight Investment committees making decisions right Advisory boards guiding strategic direction Management teams driving operational perfection [Verse 4] Harvest period comes when it's time to sell IPOs and trade sales ring the exit bell Distributions flowing back to LPs who wait IRR calculations determine the fate Fund winds down after ten years have passed Returns distributed, cycle complete at last [Chorus] Three phases moving, fundraise invest and harvest F-I-H that's how the money travels farthest General partners managing, limited partners funding Private equity lifecycle keeps the wheel turning F-I-H, F-I-H, remember these three That's how private equity sets the companies free [Outro] From fundraise to harvest the cycle spins round Private equity structure, now you've got it down F-I-H, F-I-H, the phases that guide The ten-year journey with partners by your side
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