PE Industry Quiz

Question 1 of 10

What are the two main teams within a PE firm and what does each manage?

Finance team (manages budgets) and Legal team (manages contracts)

IR team manages relationships with Limited Partners; Deal/Investment team manages portfolio companies from sourcing to monitoring

Sales team (finds new LPs) and Marketing team (manages brand)

Compliance team (manages regulation) and Operations team (manages back-office)

Question 2 of 10

What is the typical length of a PE fund's life cycle?

1-2 years

3-5 years

10 years

25+ years

Question 3 of 10

Who are Limited Partners (LPs) in a PE fund?

Institutional investors (pension funds, insurance companies, family offices) who commit capital to the fund

The PE firm's employees who own a small share of the fund

The portfolio companies that have received investment

The investment banks that source deal opportunities for the fund

Question 4 of 10

What is "carried interest" in private equity?

The management fee charged annually to LPs for running the fund

The share of investment profits earned by the General Partner once LPs have received back their capital plus the hurdle rate

The interest paid on debt used to finance acquisitions

The portion of LP capital called early to cover operating costs

Question 5 of 10

What is NAV (Net Asset Value) used for in PE reporting?

To calculate the total fees paid to the General Partner over the fund's life

To track how much capital has been called from LPs to date

To estimate the current value of unrealised portfolio companies before they are sold

To measure the fund's IRR against its benchmark

Question 6 of 10

What is the purpose of the quarterly/annual fund report sent to LPs?

Inform LPs on fund performance, portfolio company updates, KPIs, cash flows, and fees — building trust and demonstrating stewardship

Request additional capital commitments from LPs for new investments

Announce upcoming exits and distribute profits to LPs immediately

Provide a regulatory filing to government authorities

Question 7 of 10

What does TVPI stand for and what does it measure?

Total Venture Profit Index — the overall profitability of venture capital investments

Total Value to Paid-In — total value created per unit of capital invested, including unrealised value and distributions already returned

Time-Weighted Value Per Investment — how long it takes to double an investment

Total Volume of Portfolio Investments — number of companies in the fund

Question 8 of 10

In PE, what is the difference between an equity fund and a debt fund?

Equity funds invest in public companies; debt funds invest in private companies

Equity funds are for large companies; debt funds are for small startups

Equity funds acquire ownership stakes and create value through exits; debt funds lend capital and earn returns through contractual cash flows

Equity funds have a 5-year life cycle; debt funds have a 20-year life cycle

Question 9 of 10

What is a "hurdle rate" in private equity?

The minimum annual return that LPs must receive before the General Partner earns carried interest

The maximum amount of capital a fund can deploy in a single company

The minimum IRR required by regulators to approve a new fund

The rate at which LPs can redeem their investment before the fund closes

Question 10 of 10

Which UpSlide features are most relevant to the PE Investor Relations team producing fund reports?

Spell Check, Word Count, and Comment Tracking

Excel Link, Dynamic Libraries, Logo Finder, Track Changes, and Tombstones

Mail Merge, PDF Converter, and Watermarking

Data Pack, Screen Recording, and Auto-Save

PE Industry Fundamentals Quiz