pe-core — Private Equity Practice Questions

248 free Private Equity questions on pe-core: 46 easy, 136 medium, and 66 hard, every one exam-realistic and fully explained once you sign in. This is the fastest way to turn pe-core from a weakness into a scoring area — drill it in 10-question reps with immediate feedback.

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  1. If the GP receives a 20% carry on the profit from Deal A immediately, and the fund eventually liquidates with
  2. Following the investment, what is the investor's ownership percentage in the company, assuming no option pool
  3. What is the Interest Coverage Ratio?
  4. A private equity firm is calculating a 'Public Market Equiva… — If the KS-PME score is 1.15, what does this ge
  5. A sponsor provides an 'Equity Cure' to a portfolio company. What is the standard purpose of this action in a l
  6. What is the new effective conversion price for the growth equity investor?
  7. Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on the balance sheet?
  8. What is the company's Interest Coverage Ratio?
  9. In a European (whole-fund) waterfall, a fund has called $100… — How much 'carried interest' does the GP receiv
  10. If the company exits with an equity value of $600M, what is the net payout to the management pool?
  11. According to the provided VC benchmarks (Median 1.3–1.8×, Top-quartile 3.0–5.0×), how is this fund performing?
  12. If the cost of borrowing at the fund level is 4%, what is the net yield to the LPs (ignoring fees)?
  13. Which is a better LBO candidate, all else being equal?
  14. What is the sponsor's ownership percentage of the new company's equity?
  15. A $500M fund uses a 'Subscription Credit Line' to bridge its… — What is the most likely impact of this maneuve
  16. A fund's Limited Partnership Agreement (LPA) contains a 'GP… — If this $10M completed the catch-up, what was t
  17. What is the fund's Total Value to Paid-In (TVPI) multiple?
  18. If the hurdle is met, what is the maximum carry the GP can receive on Deal A at this time?
  19. If the LP wants a 10% 'margin of safety' discount on their own valuation, what is their offer price as a perce
  20. What is the sponsor's current unrealized equity value in the company?
  21. If the company had $4M shares outstanding before the down round, what is the new conversion price?
  22. If the total paid-in capital is $180M, what is the DPI (Distributed to Paid-In) multiple?
  23. What is the realized loss for the selling LP on a cash-on-cash basis?
  24. What is the warrant payoff at exit?
  25. If the embedded cost of debt is 4.5%, what is the total 'Allowed Return' dollar amount?
  26. Calculate the 'Allowed Revenue' for a utility with OpEx of $80M, Depreciation of $40M, Taxes of $20M, and a Ra
  27. If the total shares outstanding (including the new round) is $20 million and the new round issued 5 million sh
  28. What is the effective pre-money valuation from the founders' perspective after accounting for the option pool
  29. If the fund has invested $400m and realized $120m (at cost), what is the management fee in Year 6?
  30. If 60% of LPs elect to roll into the new vehicle, what is the total amount of 'New Secondary Capital' required

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