1 What do you understand by Fund? 1) A pool of money set aside by investors to Invest and generate returns 1
2) It is an Saving's Instrument
3) It is an Safety Deposit
4) It is an Pool of Money set aside used to Deal with Unexpected Situations
2 What are different types of Fund? 1) Venture Capital 6
2) Real Estate
3) Hedge Fund
4) Unit Trust , Investment Company
5) Open end Fund, Business Angels
6) All of the above
3 Explain Typical Structure of Fund 1) GP (General Partner) and LP (Limited Partner) are main parties to the fund 1
2) Fund Manager is the main party to the Fund
3) Investment Manager is the main party to the fund
4) Sales manager is the main party to the Fund
4 PE vs. VC: What's the Difference Between Private Equity and Venture Capital? 1) Venture Capital is a type of Private Equity specifcally created to focus on Smaller,New companies 1
2) Venture Capital and Private Equity have no difference
3) Private Equity only deals with Buyouts
4) Venture capital and Private Equity are two completely different branch of Finance
5 What Is a Fund of Funds in Private Equity? 1) Fund of Funds is just another PE fund 2
2) Fund of funds refers to PE funds which invest in other PE fund which in turn invest in Portfolio Companies
3) Fund of funds Is the same as Portfolio Company
4) Fund of funds don't have any Diverification
6 What do you understand by term called "Carried Interest" in PE Fund? 1) Carried Interest is the share of Profits earned by General Partners of only PE funds 1
2) Carried Interest is the share of Profits earned by General Partners of PE funds, Venture capital and hedge Funds
3)Carried Interest is the share of Profits earned by Limited Partners of PE funds, Venture capital and hedge Funds
4) Carried Interest is the share of Profits earned by Limited Partners of only PE funds
7 What do you understand by term called "MOIC" & "IRR", difference between the two and Formula to calculate? 1) Multiple on Invested Capital (MOIC) is an metric which reflects the perormance of investments relative to the initial cost of the investment 4
2) IRR Iis the Annual rate of return the Invesment is expected to generate
3) IRR is the rate of interest given by the asset
4) Both 1 & 2
8 What is an Vintage Year 1) The year in which the fund started funding the the particular investment company or fund 3
2) The year the investment company was established
3) The year of the investment company became profitable
4) The year the investment company was liquidated
9 What are the Key metrics used In Real estate Investments 1) Capitalization rate - Investors potential expected Return on the Investment (Expressed in percentage) 4
2) Occupancy Rates - Ratio of used space/rented Space to the total space available
3) Gross IRR
4) Both 1 & 2
10 What do you understand by Capital call & Distribution Notice? 1) A Capital Call is the means by which Limited Partners fund their Investments in a private Equity Fund 4
2) A Distribtion Call is an an mean through which PE funds return capital to investors
3) A capital call is an ask for capital form the investors
4) Both 1 & 2
11 What does reporting Currency Relate to? 1) The Native Currency of the Fund 4
2) The Native currency of the Asset
3) The Currency used to report the data such as cost, fair value, Equity by the Fund in the report
4) All of the above
12 What does the Industry of an investment Specify? 1) The Industry of operation of the Fund 3
2) The Industry of operation of the Investment
3) Both of the Above
4) None of the Above
13 What is an Public Ticker 1) The logo under which the company is publicly traded 3
2) The public ticker listed on the Stock exchanges for the company to be publicly Traded
3) Both of the Above
4) None of the Above
14 What Is the difference between Fund level data and Vehicle Level Data 1) Fund level data relates to the Data provided as an aggregate of the whole fund,While Asset level is specific to the investment 2
2) Fund level data reflects only the data reported by the fund, and Vehicle level data is the information relating to the SPV
3) Vehicle data relates to the data provided by the SPV ( Special pupose Vehicle
4) None of the Above
15 What Information is present under an Quarterly Report 1) The data relating to the Investment fund's Quarterly Performance 3
2) Data relating to the Asset's quarterly performance and new developments in the Quarter
3) Both of the Above
4) None of the Above
16 What is the meaning of current Equity Value 1) Equity value is calculated by Subtracting the Company's Total liabalities from it's total assets 1
2) It is an Financial Metric
3) It represents the Value to be distributed to shareholders in case of liquidation
4) All of the above
17 What does LTM mean? 1) Last tweleve months 1
2) Least tweleve months
3) Both of the Above
4) None of the Above
18 State the meaning of QTD 1) Quarter to Date 1
2) Quantity to Date
3) Quality to Date
4) None of the Above
19 What is the meaning of Operating Metric Currency 1)Currency used to report financial data such as Revenue and EBITDA 3
2) Currency used to fund daily operations
3) Both of the Above
4) None of the Above
20 What does Maturity relate to? 1) The due date/Expiry date of an investment 1
2) The day the investments gives the maximum return
3) The day the investment becomes profitable
4) None of the Above
General Questions
Sr.No Question Answer
A) Have you seen the Audited Financial / Quarterly report of Fund? Yes / No? No
B) What all details will be included in quarterly report of Fund?
C) What do you understand by entry multiples and entry enterprise value?
D) Difference between FMV at Vehicle level and FMV at Fund Level FMV means fair market value
E) Can you highlight few of Valuation methods that are usually used in valuation of portfolio investments?
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