medium · Private Equity pe-core
An analyst is calculating the Public Market Equivalent (PME) using the Kaplan-Schoar (KS-PME) method. A contribution of $100 was made when the index was at $1,000. A distribution of $150 was received when the index was at $1,200.
What is the KS-PME, and what does it indicate?
- 0.80; the fund underperformed the public market index.
- 1.25; the fund outperformed the public market index.
- 1.00; the fund's returns were perfectly correlated with the index.
- 1.50; the fund's absolute multiple was 1.5×.
Sign up free to see the explanation and track your rank →
More Private Equity pe-core practice
- If the GP receives a 20% carry on the profit from Deal A immediately, and the fund eventua
- Following the investment, what is the investor's ownership percentage in the company, assu
- What is the Interest Coverage Ratio?
- A private equity firm is calculating a 'Public Market Equiva… — If the KS-PME score is 1.1
- A sponsor provides an 'Equity Cure' to a portfolio company. What is the standard purpose o
- What is the new effective conversion price for the growth equity investor?
- Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on
- What is the company's Interest Coverage Ratio?