Venture Capital Work
1. How much is the invested capital at t=6?
a. Please round the number to one decimal, i.e., “12.4” is $12.3456 million.
2. How much is the gross value multiple at t=2?
a. Please round the number to two decimals
3. How much is the gross value multiple in t=9?
a. (Please round the number to two decimals)
4. How much is the value multiple at t=9?
a. Please round the number to two decimals
5. How much is the realized value multiple at t=7?
6. How much is the unrealized value multiple at t=4?
7. How much is the Fund’s IRR at t=3?
8. How much is the Fund’s IRR at t=6?
9. How much is the net IRR at t=7?
10. How much is the net IRR at t=9?
11. How much is the Russel 3000 10-year rolling return for 2009?
12. How much is the Russel 3000 10-year rolling return for 2022?
13.
Based on the data provided: How does the performance of the KKR fund, measured by
its value multiple at the end of its life compare to ones in that sample for 2014?
Top 10%
Top 11% to 25%
Middle 25% to 75%
Bottom 11% to 25%
Bottom 10%
14.
15.
Which of the options below better describes the use of the Russel 3000 as PME for PE
funds?
Question 16 options:
A. The Russel 3000 Index tracks the performance of the 3,000 smallest U.S.-traded stocks. It can be
considered as a more appropriate public market equivalent for private equity funds because it
encompasses smaller companies compared to the S&P 500.
B. The Russel 3000 Index tracks the performance of the 3,000 largest U.S.-traded stocks. It can be
considered as a more appropriate public market equivalent for private equity funds because it
encompasses smaller companies compared to the S&P 500.
C. The Russel 3000 Index tracks the performance of the 3,000 smallest U.S.-traded stocks. It can be
considered as a more appropriate public market equivalent for private equity funds because it
encompasses larger companies compared to the S&P 500.
D. The Russel 3000 Index tracks the performance of the 3,000 largest U.S.-traded stocks. It can be
considered as a more appropriate public market equivalent for private equity funds because it
encompasses larger companies compared to the S&P 500.
16.
PME: Case 1
Assume the fund’s first year is 2009, the PME evaluation is at the end of the 5th year, and the public
market equivalent is the Russel 3000.
How much would the limited partners have at the end of 2012 if, instead of investing in the private equity
fund, they had invested in the Russel 3000 index? Use the NAV after contributions or distributions.
17.
PME: Case 1
Assume the fund’s first year is 2009, the PME evaluation is at the end of the 5th year, and the public
market equivalent is the Russel 3000.
How much is the PME’s IRR at the end of the 5th year?
Please round the number to two digits and do not include the percentage sign, i.e., 12.3456% must be
typed 12.35
18.
PME: Case 1
Assume the fund’s first year is 2009, the PME evaluation is at the end of the 5th year, and the public
market equivalent is the Russel 3000.
The limited partners would have been better of if they had invested in which one of the following
possibilities?
Russel 3000 Index Fund
Private Equity Fund
Treasury Bond with a 5.7% yield
19.
PME: Case 2
Assume the fund’s first year is 2012, the PME evaluation is on the fund’s whole life, and the public market
equivalent is the Russel 3000
How much would the limited partners have at the end of 2016 if, instead of investing in the private equity
fund, they had invested in the Russel 3000 index? Use the NAV after contributions or distributions.
20.
PME: Case 2
Assume the fund’s first year is 2012, the PME evaluation is on the fund’s whole life, and the public market
equivalent is the Russel 3000.
The limited partners would have been better of if they had invested in which one of the following
possibilities?
Private Equity Fund
Russel 3000 Index Fund
Treasury Bond with a 5.7% yield
21.
PME: Case 3
Assume the fund’s first year is 2014, the PME evaluation is on the fund’s whole life, and the public market
equivalent is the Refinitiv VC Index.
How much would the limited partners have at the end of 2018 if, instead of investing in the private equity
fund, they had invested in the Refinitiv VC Index? Use the NAV after contributions or distributions
