medium · Private Equity & LBOs

A fund's KS-PME is calculated to be 1.25 ×. What does this metric specifically indicate to the LP?

1. The fund achieved a 1.25x net MoIC on its total paid-in capital from LPs.
2. The PE fund outperformed the public index by 25% on a cash-flow-weighted basis
3. The fund ranks in the top 25% of its vintage-year performance quartile group.
4. The fund's net IRR was independently calculated to be 25 points higher than the S&P 500's.

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