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Message: [QUOTE="AZOrange, post: 5305085, member: 278"] Everyone is overthinking it. PE funds are just liquidity vehicles. They provide the schools (or conf or whatever) the cash they need now…in return for a PREF with some sort of upside split. These returns are funded by cash flows that the school has or will have but for time…the PE fills the void. Similar to pro sports, it provides a liquidity mechanism for owners to cash out stakes, partial, while giving the investors a pretty exclusive club [/QUOTE]