hard · Private Equity & LBOs
What does a Public Market Equivalent (PME) score of 1.15x indicate about a private equity fund's performance?
- The fund has returned 1.15x the committed capital to the limited partners.
- The fund's IRR was 15% higher than the S&P 500's annualized return.
- The fund outperformed the public market index by 15% on a cash-flow-adjusted basis.
- The fund's portfolio companies are trading at a 15% premium to public peers.
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