hard · Private Equity pe-core

An LP with a $30B AUM targets a 25% private equity allocation. Their current PE NAV is $5B.

If they plan to reach their target NAV of $7.5B over 5 years, what is the approximate steady-state annual commitment required thereafter, assuming an average fund life of 6 years?

  1. $500M
  2. $1.25B
  3. $833M
  4. $1.50B

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