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Private Equity

Exam 1: 2019/20 T3

Comprehensive exam-prep quiz on PE fund structure, PE return measures, LBO candidates, mezzanine financing, return decomposition, debt coverage, IRR, sweet equity, and sources-and-uses. Source:

Question 2 of 22

Which statement correctly describes the investors in a private equity fund?

Pick one: press 1-4 on your keyboard or click an option.
A

Limited partners are the investors of the private equity fund

B

The general partner is the investor of the private equity fund

C

The maximum rate of return promised to LPs is called the hurdle rate

D

The general partner pays a management fee to the limited partner