# J-Curve

*Startups & Venture Capital — Finicade finance glossary*

The J-curve describes a private fund's return path: negative early as fees are charged and investments sit at cost, then rising as exits arrive. Judging a fund in its first three years measures fee drag, not skill. It's also why interim IRRs from young funds are close to meaningless and why LPs assess managers on realised returns from mature vintages.

**Also known as:** j curve, private equity j-curve

**Related terms:** [Fund Vintage](https://finicade.com/glossary/fund-vintage), [Limited Partner](https://finicade.com/glossary/limited-partner), [IRR (Internal Rate of Return)](https://finicade.com/glossary/irr), [Private Equity](https://finicade.com/glossary/private-equity), [Carried Interest](https://finicade.com/glossary/carried-interest)

Source: https://finicade.com/glossary/j-curve