nav of private equity fund private, valuation, management, only

svgleeson

cfai textbook, volume 5, take a look at the example on page 76, reading 49 , private equity valuation.
i do not get how do we calculate column (5) NAV before distributions ?
to me it would make sense to take paid in capital, add operating results and subtract management fees so (5) = (2) - (3) + (4). but only the first row for year 2001 does that:
44 = 50 -1 + (-5). i do not get how do we get 42.7 in the second row, and the rest of the rows. thank you in advance for any clarifications

mengxu

2001 Called Down = 50
Mgmt Fees 2001 = (1)
Operating Results 2001 = (5)
====================
NAV before distrib = 44
No distribs in 2001

NAV After Distrib 2001 = 44
2002 - Called Down 15
Mgmt Fees = (1.3)
Operating Results = (15)
44 + 15 - 15 - 1.3 = 42.7 that you are asking for.

CP

KungFuPanda

cpk123 Wrote:
-------------------------------------------------------
> 2001 Called Down = 50
> Mgmt Fees 2001 = (1)
> Operating Results 2001 = (5)
> ====================
> NAV before distrib = 44
> No distribs in 2001
>
> NAV After Distrib 2001 = 44
> 2002 - Called Down 15
> Mgmt Fees = (1.3)
> Operating Results = (15)
> 44 + 15 - 15 - 1.3 = 42.7 that you are asking for.

cpk123 wins!

Flawless Victory. (MK Voice)

tarunajwani

aaah i forgot about adding the called down sum in 2002. thank you so much, i understand now.

Otabek

thank you for the comment but i do not believe this to be correct.
if we subtract the carried interest that would be NAV *after* distributions.
here i was asking about the NAV *before* distributions.
besides, the first 3 years do not even have the carried interest. any other explanations, anyone?

xilige

subtract the carried interest as well... you should have a -1.3 somewhere there...

CP