Private Equity Performance Metrics Quiz
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Questions and Answers

What is the Gross Margin percentage at a Money Multiple of 3.7x?

  • 50%
  • 55% (correct)
  • 53%
  • 58%
  • At what Money Multiple is the Revenue Growth multiple 4.5x?

  • 5.3x
  • 4.7x (correct)
  • 4.2x
  • 5.0x
  • What is the Exit EBITDA Multiple Improvement at a Money Multiple of 3.8x?

  • 3.0x
  • 4.9x (correct)
  • 5.0x
  • 5.5x
  • At what Exit Year percentage is the IRR 26.7%?

    <p>6</p> Signup and view all the answers

    What is the LIBOR percentage at a Money Multiple of 3.7x?

    <p>1%</p> Signup and view all the answers

    What is the IRR percentage at a Money Multiple of 4.1x?

    <p>26.7%</p> Signup and view all the answers

    At what Money Multiple is the Gross Margin percentage 50.0%?

    <p>3.7x</p> Signup and view all the answers

    What is the Exit Year when the Revenue Growth multiple is 4.8x?

    <p>6</p> Signup and view all the answers

    At what Money Multiple is the LIBOR percentage 9.0%?

    <p>5.0x</p> Signup and view all the answers

    What is the Exit EBITDA Multiple Improvement when the Money Multiple is 4.2x?

    <p>3.1x</p> Signup and view all the answers

    Study Notes

    Investment Performance

    • IRR (Internal Rate of Return) ranges from 30.1% to 43.6%
    • Performance Fees are 35%
    • Money Multiple is 3.7x with a Gross Margin of 40.0% to 50.0%

    Revenue Growth and EBITDA Multiple

    • Revenue Growth rates are 4% to 8%
    • EBITDA Multiple ranges from 2.6x to 5.6x
    • Exit EBITDA Multiple Improvement ranges from (1.0x) to 5.6x

    LIBOR and Exit Year

    • LIBOR (London Interbank Offered Rate) ranges from 1.0% to 9.0%
    • Exit Year 5 has a Money Multiple of 3.3x to 4.6x
    • Exit Year 5 has a Gross Margin of 60.3% to 77.6%

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    Description

    Test your knowledge on key private equity performance metrics such as Internal Rate of Return (IRR), Money Multiple, Performance Fees, Exit Year, Gross Margin, and Revenue Growth. This quiz covers a range of financial metrics used to evaluate the performance of private equity investments.

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