Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I am struggling with understanding private equity partnerships. I know how to calculate each of these things, however I am unsure what to assume if

I am struggling with understanding private equity partnerships. I know how to calculate each of these things, however I am unsure what to assume if it has good performance and nothing unusual about it.

I know that typically, you invest 80% of the partnership, so 400m would be invested. But I need help on where to take it from there.

-$500m PE partnership with good performance and nothing unusual about it.

a. Roughly how much does this Fund invest?

b. Roughly how much does this Fund collect in proceeds?

c. Roughly how big is this Fund's carry?

d. Roughly what is this Fund's Net Return multiple?

e. Roughly what is this Fund's Net IRR?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals of Cost Accounting

Authors: William Lanen, Shannon Anderson, Michael Maher

3rd Edition

9780078025525, 9780077517359, 77517350, 978-0077398194

More Books

Students also viewed these Finance questions