hard · Private Equity & LBOs
A fund's Kaplan-Schoar Public Market Equivalent (KS-PME) is calculated to be 1.15x against the S&P 500.
Which of the following best describes the interpretation of this result?
- The fund's IRR is 15% higher than the index's annualized return.
- The GP earned 15% of the total profits as carried interest.
- The fund returned 1.15x the total capital committed by LPs.
- The fund outperformed the index by 15% on a cash-flow-weighted basis.
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