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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 6 of 22

Which statement is true according to the private equity concepts tested?

Pick one: press 1-5 on your keyboard or click an option.
A

Growth equity funds typically have the largest ticket size among PE funds

B

The harvesting phase corresponds to the beginning of the fund lifecycle

C

PE performance measures include IRR, Money Multiple and Net Present Value as a standard set

D

The use of debt in a PE deal can increase return on equity

E

A potential PE target should have high capital expenditures and be a market leader