Which of the following statements is true?

I) When calculating Enterprise Value for Relative Valuation purposes we subtract all Cash holdings as stated in the balance sheet. However, theoretically speaking, it would make sense subtract "Excess cash" only, that is, the cash holdings that are not strictly necessary to support the operation of the business.

II) Private equity companies are not expected to be as successful managing money in the future as they were in the past because, with more private equity money chasing a finite number of deals, it is now harder to purchase private businesses on the cheap compared to the 1990s and early 2000s.