medium · Private Credit 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 exactly 1.15 times the total capital that was committed and drawn from the LP.
- The fund outperformed the public market equivalent by 15% in total wealth creation terms.
- The fund ranks in the 'top quartile' of its 2018 vintage year relative to peer funds.
- The fund's internal rate of return (IRR) was 1.15% higher than that of the S&P 500 index.
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