Private Markets

J-Curve

Definition

What is J-Curve?

The pattern in which private-fund returns are often negative early and improve later as investments mature.

Example in practice

Fees and early write-downs create the lower part of the J-curve.

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Investment in privately held companies, often with active ownership and a multi-year exit plan.

Equity financing for young, high-growth companies with substantial uncertainty.

An individual who invests personal money in early-stage companies.

A preliminary document outlining the main commercial terms of a proposed investment.

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