easy · Private Equity
An institutional investor calculates the Kaplan-Schoar Public Market Equivalent (KS-PME) for a 2018 vintage fund.
If the result is 1.15, how should the investor interpret the fund's performance?
- The fund outperformed the public market index by 15%.
- The fund has returned $1.15 for every $1.00 invested.
- The fund underperformed the index because the result is less than 1.5.
- The fund's internal rate of return is exactly 11.5%.
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?