CAIA level 1 - Topic 5 Private Equity questions with correct answers
6 types of private equity - Answer Equity PE - venture capital - buyouts - merchant banking Debt PE - mezzanine debt (debt / equity hybrid for middle market companies) - distressed debt - leveraged loans (noninvestment grade LIBOR + 1.25% Criteria for distressed debt - Answer Equal to CCC / Caa or lower Yielding 10% more than the risk-freer rate Market price less than 50% par 4 Types of covenants - Answer Positive Negative Incurrence Maintenance Business Development Companies (BDCs) - Answer Closed end funds No corporate taxation on distributed profit Premium or discount = (market price / NAV) - 1
Written for
- Institution
- CAIA - Chartered Alternative Investment Analyst
- Course
- CAIA - Chartered Alternative Investment Analyst
Document information
- Uploaded on
- August 1, 2023
- Number of pages
- 5
- Written in
- 2023/2024
- Type
- Exam (elaborations)
- Contains
- Questions & answers
Subjects
-
caia level 1 topic 5 private equity questions wi
Also available in package deal