medium · Private Equity pe-core
A PE fund uses a 'Subscription Credit Line' to fund a $100M investment for exactly 12 months before calling LP capital.
If the investment is sold for $200M after 4 years, how much did the usage of the sub-line increase the reported 'LP IRR' compared to a scenario with no sub-line?
- 7.1%
- 2.5%
- 0%
- 15.0%
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