Private Equity Flashcards
1
Q
Management fees
A
Calculated as the %age fee * total paid-in capital
2
Q
Carried interest
A
= %age carried interest * increase in NAV before distributions
3
Q
NAV before distributions
A
= NAV after distributions in prior year + capital called down - mgmt fees + operating results
4
Q
NAV after distributions
A
= NAV before distributions - carried interest - distributions
5
Q
DPI multiple
A
= cumulative distributions / paid in capital
6
Q
RVPI multiple
A
= NAV after distributions / paid in capital
7
Q
TVPI multiple
A
= DPI + RVPI
8
Q
Proportion of company received for investment in the company (f)
A
f = INV / PV(POST) = FV(INV) / exit value
Shares(vc) = shares(founders) * [ f / (1-f)]
Price = INV / shares(vc)