Private Investments and Structures

Free CFA Level III: Private Markets lesson in Private Investments & Structures. 21 min read, ~3,091 words.

Private markets value via appraisals with illiquidity premiums of 200-400bp and 7-12 year lock-ups; public markets offer continuous mark-to-market pricing and daily liquidity. TVPI = DPI + RVPI: DPI is realized cash, RVPI is unrealized NAV, TVPI the total multiple. A 1.8x fund split 0.6/1.2 is mid-life; 1.6/0.2 is harvested...