I’ve decided to tackle L2 by leaving the material with heavy calcs to next year so currently working my way through alternative investments. Anyway, on the off chance that anyone out there has gone through this, I have a question:
In “Concept in Action: Evaluating a Private Equity Fund” (p161 and 162 of AI) the figures that feed into the gross and net IRR have left me confused. I’m thinking there’s a typo on the years (eg, 2000 should be 2001 and there shouldn’t be a 2006 at all) but not 100% on it… my understanding is that you take called down capital at the beginning of the period and add the operating result from the year before - How is the year 2000 in the solution? I’ve possibly got this wrong but would appreciate someone explaining this to me - they brush over some of the calcs fairly rapidly in this section.
