How Private Equity Funds REALLY Work: Full GP/LP Structure Explained @bridger_pennington
How Private Equity Funds REALLY Work: Full GP/LP Structure Explained  @bridger_pennington
Uploaded December 2025 | Updated September 2026, 2 weeks ago
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Private equity sounds mysterious until you see how the money actually moves! In this video, Bridger Pennington breaks down exactly how a private equity fund is structured, how the GP/LP model works, and how fund managers get paid using a simple $50M fund example.

You’ll learn how PE firms raise capital, buy companies, grow them, and exit for a profit — all explained in a clear, beginner-friendly way.

What you’ll learn:

• How the GP/LP structure actually works
• How private equity funds raise and deploy capital
• Why PE uses capital calls
• How management fees and carried interest work
• The full lifecycle of a private equity fund

If you want a simple explanation of private equity fund structure — without the jargon — this video is for you.

CHAPTERS:
0:00 Intro
0:10 How Private Equity Funds Are Structured
2:20 How the GP/LP Model Works
3:40 $50 Million Private Equity Fund Example
5:02 The Waterfall Distribution
6:32 How General Partners Get Paid
7:09 $50 Million Fund Breakdown
11:10 How Fund Managers Actually Get Paid
12:28 Why This Fund Structure Works So Well
13:35 Outro

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ABOUT BRIDGER PENNINGTON:
Bridger Pennington is the founder of 2 investment funds that have done over 217 deals in the last 4 years. Additionally, he currently manages an 8-figure hedge fund Ugly Unicorn and is a strategic advisor to 8 portfolio funds.

He has started helping others launch their own funds through Fund Launch, an online program with over 60,000 students designed to help them start investment funds without working on Wall Street or having an Ivy League degree. Last year they launched 130 student funds, and have 12 student funds over $100 million.

Bridger has spoken on stage to thousands of people across the United States and is determined to help entrepreneurs scale their businesses through launching their own funds.

DISCLAIMER: This is NOT financial or legal advice. Fund Launch’s experiences with using a fund strategy are unique to them. You should not consume this content with the expectation that you will have similar or the same results. All fund projects are subject to multiple variables and risks that make it impossible to predict success. Since we cannot predict success or provide you with information on what an average customer experience is by creating a fund, you should assume you will not have the same type of success or any success at all. We encourage you to seek out advice from other qualified professionals for advice on setting up your particular fund.
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How Private Equity Funds REALLY Work: Full GP/LP Structure Explained

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