easy · Private Equity pe-core
A fund's Kaplan-Schoar Public Market Equivalent (KS-PME) is calculated to be 1.15x against the S&P 500.
Which of the following best describes the interpretation of this result?
- The fund's IRR is 15% above the index's annualized rate of return.
- The GP earned 15% of total profits generated as its carried interest.
- The fund returned 1.15x the total capital committed by its limited partners.
- The fund outperformed the index by 15% on a cash-flow-weighted basis.
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