easy · Private Equity
An LP is evaluating a secondary purchase of a fund interest with a reported NAV of $20M. The LP re-underwrites the assets and believes they are only worth $18M.
If the LP wants a 10% 'margin of safety' discount on their own valuation, what is their offer price as a percentage of reported NAV?
- 90%
- 81%
- 72%
- 80%
Sign up free to see the explanation and track your rank →
More Private Equity practice
- If the GP receives a 20% carry on the profit from Deal A immediately, and the fund eventua
- Following the investment, what is the investor's ownership percentage in the company, assu
- What is the Interest Coverage Ratio?
- A private equity firm is calculating a 'Public Market Equiva… — If the KS-PME score is 1.1
- A sponsor provides an 'Equity Cure' to a portfolio company. What is the standard purpose o
- What is the new effective conversion price for the growth equity investor?
- Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on
- What is the company's Interest Coverage Ratio?