medium · Private Credit & Debt fund-structures-returns-economics
An investor uses the 'Kaplan-Schoar PME' to evaluate a 2018 vintage fund.
If the PME is $1.15, what does this indicate about the fund's performance?
- The fund returned 1.15× the total capital committed by the LP.
- The fund outperformed the public market equivalent by 15% in total wealth creation terms.
- The fund is in the 'top quartile' of its vintage year compared to its peers.
- The fund's internal rate of return (IRR) was 1.15% higher than the S&P 500.
Sign up free to see the explanation and track your rank →
More Private Credit & Debt fund-structures-returns-economics practice
- What is the fund's TVPI (Total Value to Paid-In) multiple?
- What is the Dividend Coverage ratio?
- What is its current Debt-to-Equity (Leverage) ratio?
- A BDC (Business Development Company) is required to distribu… — What is the primary benefi
- An investor is reviewing a fund's performance and sees a DPI… — What does this suggest abo
- If the fund's net TVPI is only 1.15×, what is the most likely explanation?
- If management achieves a 6.0x Money Multiple (MOIC) on their personal investment, while th
- What is the Sponsor's Money Multiple (MOIC)?