[Verse 1] Private equity fund just launched today Investors write their checks, capital deployed But returns look grim in the early phase Management fees devour, nothing's been enjoyed Year one shows red ink across the board Portfolio companies need restructuring time [Chorus] J-curve dipping down before it climbs Negative cash flows in the initial grind Drag, drag, dragging returns behind But patience pays when deals unwind J-curve swooping up, profits you'll find That dip's just temporary by design [Verse 2] Acquisition costs pile up front-loaded Due diligence bills and banker's take Portfolio needs capital, heavily loaded Three years pass before the first big break Operating improvements start to show Exit strategies begin to crystallize [Chorus] J-curve dipping down before it climbs Negative cash flows in the initial grind Drag, drag, dragging returns behind But patience pays when deals unwind J-curve swooping up, profits you'll find That dip's just temporary by design [Bridge] Management fees eat away at gains Two percent annual on committed funds Carried interest waits while value strains Twenty percent when performance runs The hockey stick eventually appears When exits multiply investor tears [Verse 3] Year five brings IPOs and strategic sales Distribution waterfalls start to flow Internal rates of return tell better tales Multiple expansion helps the numbers grow The J-curve shape becomes crystal clear Patience rewarded after patient years [Chorus] J-curve dipping down before it climbs Negative cash flows in the initial grind Drag, drag, dragging returns behind But patience pays when deals unwind J-curve swooping up, profits you'll find That dip's just temporary by design [Outro] From valley low to mountain peak The J-curve shows what smart funds seek
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