About the report

What is a J-Curve? Simply put, J-Curve shows net cash flows of a private equity fund investment. The depth and height of the J and the width of its trough all reflect different aspects of private equity funds’ performance. This report includes all the ins and outs of the famed curve as well as explains how investors can use the dynamics of several J-Curves to their advantage.

Key highlights

• J-Curve flattening Flatter J-Curve is good news for investors. Smaller, more gradual capital calls allow them greater latitude in managing their broader portfolio. The cash committed to a private equity fund may also be partially committed to another security or invested in another way.

• J-Curves in a portfolio of funds Each of the underlying funds has its own investment metabolism and thus its own schedule of capital calls and distributions. Patient and persistent investors could potentially use differing dynamics to their favor and build a self-funding portfolio.

• J-Curve at Moonfare Moonfare typically calls 25% of committed capital upfront in the feeder fund vehicles it manages. This capital forms a buffer that assures that we are ready to meet the capital calls of the general partners we work with.

‍‍‍‍‍Important notice: This content is for informational purposes only. Moonfare does not provide investment advice. You should not construe any information or other material provided as legal, tax, investment, financial, or other advice. If you are unsure about anything, you should seek financial advice from an authorised advisor. Past performance is not a reliable guide to future returns. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you are unlikely to be protected if something goes wrong. Subject to eligibility.