Question
1a).What option position most resembles the payouts of private equity investments? b). Fill in the blanks of the following sentence using the terms private equity
1a).What option position most resembles the payouts of private equity investments?
b). Fill in the blanks of the following sentence using the terms private equity fund, private equity firm, and underlying business enterprises: A _______________ serves as the general partner to a _______________ that invests its money in _______________.
C). What type or types of securities does a venture capitalist purchase in establishing a position in an underlying business venture?
d). What is an equity kicker, and how does it serve the interests of a venture capitalist?
e). Describe two major differences between typical hedge fund fees and typical private equity fund fees related to claw backs and hurdle rates.
f). List major contrasts between venture capital and buyouts.
g). In what way does a venture capital investment resemble a call option?
h). What differentiates the seed capital financing stage from the first stage of venture capital financing?
e). What is the primary difference between a management buy-in LBO and a management buyout LBO?
j). Briefly describe mezzanine financing.
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