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Private Equity

Exam 3: Sample Exam

Sample Exam Questions covering multiple choice and short answer topics including fundraising, dry powder, LPs, fund types, secondary investments, mezzanine debt, covenants, and EV/EBITDA valuation. Direct transcription from the 2017/2018 sample exam.

Question 2 of 8

Dry powder is the:

I. The amount of money provided by the liquidation of a position, which will not be invested in new opportunities. II. The amount of money provided by the liquidation of a position, which will be invested in new opportunities. III. The amount of money a fund has to invest in new opportunities at a pre-determined point in time. IV. The amount of money that is left for distribution to general partners, after the closing of a fund.

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

Only II and IV are correct.

B

Only III is correct.

C

Only I is correct.

D

Only II and III are correct.