Q: Sandy is confused about the terminology used in the private equity industry
Sandy is confused about the terminology used in the private equity industry. How would you explain to her the differences between a limited partner and general partner in private equity?
See AnswerQ: “Waterfalls are pretty things in nature; it is water falling
“Waterfalls are pretty things in nature; it is water falling off a cliff. But how do they function in private equity?” asks your friend. How do you answer this question?
See AnswerQ: People who operate private equity funds can receive very high levels of
People who operate private equity funds can receive very high levels of compensation if the fund is able to sell its portfolio firms for a much higher price than what it paid for and invested in them....
See AnswerQ: Why do general partners in private equity funds pay such a low
Why do general partners in private equity funds pay such a low rate of tax on the income they generate?
See AnswerQ: Robyn is an entrepreneur, and she is looking for a private
Robyn is an entrepreneur, and she is looking for a private equity firm to make an equity investment in her firm. How can Robyn tell the difference between the dumb money and smart money that various p...
See AnswerQ: You read in the financial press that the economy of Finland is
You read in the financial press that the economy of Finland is sliding into a recession. What will happen in the bond market and the loanable funds market in Finland, ceteris paribus?
See AnswerQ: Private equity funds often earn high returns on their investments, in
Private equity funds often earn high returns on their investments, in part because the interest that must be paid on debt issued by their portfolio firms can be used to reduce the amount of federal in...
See AnswerQ: If the market price for bonds is higher than the equilibrium price
If the market price for bonds is higher than the equilibrium price, what is the result, and what will change to bring about equilibrium as price falls, ceteris paribus?
See AnswerQ: When the Fed was created, one of its main purposes was
When the Fed was created, one of its main purposes was to maintain the gold standard. What does this mean?
See AnswerQ: The Federal Reserve Bank of New York has a great deal of
The Federal Reserve Bank of New York has a great deal of influence over financial markets to this very day. Yet the New York Fed is not as powerful as many wanted it to be in the early part of the twe...
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