hard · Private Credit & Debt fund-structures-returns-economics
A private debt fund uses 'Fund-Level Leverage' of 1.0x on a portfolio with a 9% net yield.
If the cost of borrowing for the fund is 5%, what is the approximate return to the fund's LPs (ignoring fees)?
- 14.0%
- 18.0%
- 13.0%
- 4.0%
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