hard · Private Credit & Debt fund-structures-returns-economics
A fund's 'Loss Ratio' is defined as the percentage of invested capital that was lost on realizations.
If a 200.0 million fund invests in 10 companies, exits 4 for a total of 120.0 million (on 80.0 million cost) and realizes a total loss on 1 company that cost 15.0 million, what is the current loss ratio?
- 7.5%
- 5.0%
- 12.5%
- 18.8%
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