medium · Private Equity pe-core

What does a Public Market Equivalent (PME) score of 1.15x indicate about a private equity fund's performance?

  1. The fund has returned 1.15x the committed capital to its limited partners
  2. The fund's annualized IRR ran 15 percentage points above the S&P 500's return
  3. The fund outperformed the public market index by 15% on a cash-flow-adjusted basis.
  4. The fund's portfolio companies are currently trading at a 15% premium versus public peers

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