Alternative Investments Flashcards
1
Q
3 components of return on a commodity investment
A
Collateral yield, price return, roll yield
2
Q
3 methods of valuing real estate
A
Comparable sales, income, cost
3
Q
Mezzanine stage financing
A
Capital to prepare a firm for an IPO
4
Q
Difference between MBO and MBI
A
MBO sees the existing mgmt team stay, MBI sees external mgmt team replaced
5
Q
Mezzanine financing
A
Debt issued subordinate to the high yield bonds issued
6
Q
Clawback provision ensures
A
PE fund clients receive at least 80% of the profits generated by the portfolio as a whole
7
Q
Difference between soft and hard hurdle rate
A
Hard: incentive fees paid only on the excess returns above the benchmark
8
Q
Two restrictions on redemptions from a hedge fund
A
Lockup period and notice period
