5 Questions
Why do private equity investments have distinct entry and exit points?
To exercise greater direct control and apply specialized knowledge
What contributes to the higher-return opportunities that private equity funds provide?
Influence on portfolio companies' management and operations
Why is investing in private equity considered riskier than investing in common stocks?
Because of higher risk factors like illiquidity and leverage
What makes measuring historical private equity performance challenging?
Presence of survivorship, backfill, and other biases
Why are published private equity indexes considered unreliable measures of performance?
Subject to survivorship, backfill, and other biases
Explore the expectations and processes involved in private equity investments, including ownership capital returns and distinct entry and exit points. Learn how managers add value over specific life cycle phases.
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