easy · Private Credit & Debt fund-structures-returns-economics
An investor is reviewing a fund's performance and sees a DPI of $0.40 × and a TVPI of $1.50 ×.
What does this suggest about the fund's lifecycle?
- The GP has failed to meet the 8% hurdle rate
- The fund has already liquidated all assets and returned all capital
- The fund is likely in its 'harvest' period with significant unrealized gains
- The fund is experiencing the 'J-Curve' and losing money
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