Free CAIA Level I Private Equity Practice Questions
Private equity on CAIA Level I covers venture capital stage financing, growth equity, leveraged buyouts (LBOs), PE fund structures, exit strategies (IPOs, M&A, SPACs), and long-term PE performance benchmarking.
209 questions70 easy97 medium42 hard2026 syllabus
Sample Questions
Question 1
Easy
What is a "vintage year" in private equity?
🎉
Correct Answer: D
Solution
D is correct.
The vintage year refers to the year in which a private equity fund holds its final close or begins deploying capital, and is used to group funds for performance benchmarking purposes.
Question 2
Medium
The power law of returns in venture capital implies that:
🎉
Correct Answer: B
Solution
B is correct.
The power law of returns is a fundamental characteristic of VC investing: a small fraction of portfolio companies (often fewer than 10%) generate the vast majority of fund returns, while many investments result in partial or total losses. This extreme skewness means that missing even one top performer can dramatically reduce fund returns.
Question 3
Hard
Studies of venture capital fund return drivers report which of the following findings?
🎉
Correct Answer: D
Solution
D is correct. Research on GP friendship finds that partners sharing ethnic, educational, or career backgrounds are more likely to share deals, yet this reduces the probability of success, with the harm most pronounced for early-stage investments. The other purported findings reverse the documented relationships for fund size, gender diversity, and connections.
FreeFellow was built by Jeffrey Ting, a credentialed actuary and CFA charterholder who has passed thirteen of the hardest exams in finance, all on his first attempt. He paid four-figure prep fees along the way.
So he started writing his own questions, then lessons, then mock exams, until it grew into a full prep platform covering 40 exams with more than 45,000 original practice questions.
01
Cost shouldn't decide who gets in.
A CFA charter, a CPA license, an actuarial credential. Each opens a real career, but prep fees add to the cost of getting there. FreeFellow keeps its original question bank and written lessons free so you can study even if a paid course is out of reach.
02
Free should mean free.
The original question bank, the worked solutions, the topic lessons, mixed practice, and your readiness score stay free, forever. Full access needs a free account, and practice usage limits apply. Fellow adds AI grading on supported exams, spaced-repetition flashcards, full-length mock exams, analytics, and a study plan that adapts to your progress.
