At the end of Q3 2022, PE fundraising was down 28% globally and 8% in the U.S. compared to the same period in 2021. A record number of PE funds (nearly 3,300) are currently in the market, but over half the capital raised through Q3 2022 went to the small minority (3.6%) of funds that target $5 billion or more assets under management (AUM). Further, fundraising is challenging as LPs succumb to the denominator effect while also receiving fewer distributions as GPs retain assets in a difficult market. When coupled with other market and global developments, those fundraising struggles are trickling down to negotiations between LPs and GPs over key fund terms. Those trends and industry developments were discussed in a Paul Weiss report (Report) analyzing the results of a survey of approximately 50 recently raised PE funds that each targeted at least $2 billion AUM across a diverse range of strategies, vintages, geographies and sizes. This article highlights important takeaways from the Report, including regarding economic terms; governance and other non-economic terms; and overall industry trends. It also offers supplemental insights from the Private Equity Law Report’s interview with Paul Weiss partner Marco V. Masotti that extrapolate on the Report’s findings and provide additional commentary on the state of the PE industry. For more from Masotti, see “Contingent Dislocation Funds and Market Disruptions: Appeal, Application and Adoption Before Adverse Events (Part One of Three)” (Mar. 15, 2022).