Investments in Private Capital: Equity and Debt
Free CFA Level I lesson in Alternative Investments. 15 min read, ~2,322 words.
Private equity = LBO + venture capital + growth equity. Long lock-ups (10-12 yr), J-curve, illiquidity premium. Private debt = direct lending, mezzanine, distressed, venture debt, infrastructure debt, specialty finance. Floating rate, senior secured most common; direct lending dominates by AUM. LBO targets stable cash flows with 60-80% debt; VC...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- private capital equity and debt
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