hard · Private Credit & Debt
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%
Sign up free to see the explanation and track your rank →
More Private Credit & Debt practice
- What is the fund's TVPI (Total Value to Paid-In) multiple?
- If the current SOFR rate drops to 0.25%, what is the all-in interest rate the borrower mus
- What is the Dividend Coverage ratio?
- What is the blended interest rate paid by the borrower?
- What is its current Debt-to-Equity (Leverage) ratio?
- A borrower's credit agreement includes a 'Negative Pledge'.… — Is this allowed?
- 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