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LOS h: Interpret and compare financial performance of private equity funds from the perspective of an investor.
Q1. The relevant measure of cash flows for the limited partners (LPs), and the LPs’ realized return from investment in the private equity fund, respectively, is:
Return metric LPs’ realized return
A) Gross IRR Residual value to paid-in capital
B) Net IRR Distributed to paid-in capital
C) Paid-in capital Net IRR
Q2. An investor in a private equity fund realizes that the residual value to paid-in capital (RVPI) is fairly large relative to the paid-in capital (PIC). The most appropriate conclusion drawn by the investor would be that:
A) the fund successfully earned profits from its investments.
B) there were significant cash flows from the fund to the investor.
C) it will take longer for the investor to realize a return from the fund.
Q3. An analyst is considering the performance of two private equity funds, Delta and Kappa.
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Performance of private equity fund Delta and Kappa |
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|
Delta |
Kappa |
|
DPI |
2.0 |
0.0 |
|
RVPI |
0.0 |
2.0 |
|
TVPI |
2.0 |
2.0 |
The most appropriate conclusion an analyst can draw from the table is that:
A) Delta has yet to turn a profit.
B) Kappa has distributed $2.0 for every dollar invested.
C) Kappa may be a younger fund than Delta. | 
发表于 2009-3-10 11:37
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