Gross returns reflect investment performance before deduction of management fees, carried interest, and fund expenses. Net returns reflect performance after all fees and expenses, representing the LP's actual experience.
The marketing rule requires that gross and net performance be presented together (or with equal prominence) in advertisements. Net returns are the standard for LP reporting and performance benchmarking.
This article is for informational purposes only and does not constitute legal advice. Consult qualified professionals for guidance specific to your situation.