The objective to put yourself in the position of a (competitive) buyer, looking to purchase this particular $2.57 million LP stake in the Fund. Find below some guidelines and questions you will need to answer in order to provide an estimate regarding what kind of pricing [Fund X] (white marked on purpose) deserves.

• a). What is the DPI, TVPI, and RVPI for this fund as of 3/31/2005?]
• b). What is the price you would you pay for [Fund X] as a % of NAV (as of 3/31/2005)? PAR, premium, discount, or would you even bid for this fund at all? And why?
• c). Assuming the exact same purchase price (dollar amount) you would offer the seller/broker, how would you be able to enhance your returns (IRR/Multiple) and why?

  

Transcribed Image Text:

Assets: Cash Balance Sheets Receivables Prepaid Expenses Investments, at estimated fair value (cost of $1,050,259,311 in 2005 and $1,076,030,003 in 2004) Total Assets Liabilities and Partners' Capital: Accounts Payable and Accrued Liabilities Partners Capital Total Liabilities and Partners' Capital See accompanying notes. March 31, 2005 (unaudited) $ 26,481,265 $ 13,950,953 3,189,329 $ 1,616,813 5,633,271 1,011,909,287 December 31, 2004 (audited) 553,130 1.045,087.506 $1,045,640,636 $1,045,640,636 $1,179,756,447 1,162,616,165 $ 2,180,923 1,177,575.524 $1,179,756,447 Assets: Cash Balance Sheets Receivables Prepaid Expenses Investments, at estimated fair value (cost of $1,050,259,311 in 2005 and $1,076,030,003 in 2004) Total Assets Liabilities and Partners' Capital: Accounts Payable and Accrued Liabilities Partners Capital Total Liabilities and Partners' Capital See accompanying notes. March 31, 2005 (unaudited) $ 26,481,265 $ 13,950,953 3,189,329 $ 1,616,813 5,633,271 1,011,909,287 December 31, 2004 (audited) 553,130 1.045,087.506 $1,045,640,636 $1,045,640,636 $1,179,756,447 1,162,616,165 $ 2,180,923 1,177,575.524 $1,179,756,447

Answer rating: 100% (QA)

ANSWER To evaluate the pricing of the 257 million LP stake in Fund X we need to answer the following ... View the full answer