J-Curve

"In private markets, the J-curve is the term commonly used to describe the tendency for investors in closed-end funds to experience negative returns in the early years of a fund’s life, particularly with primary (newly formed) fund investments. This occurs because capital commitments take several years to be called, yet fees are charged (on committed capital) prior to the realization of returns, such as distributions or the sale of portfolio company investments. And while the J-curve reverses over time as investments are made, the fund’s net asset value grows and investments are realized, investors are nonetheless exposed to negative returns in those early years".

Source: https://russellinvestments.com/us/blog/flattening-j-curve-private-equity-strategies