In terms of its investment characteristics Private Equity contributes more to return enhancement than to diversification. Shouldn’t buyout funds which is a type of private equity demontrate similar characteristics? In Schweser Volume 2 Exam 1 6-d the answer indicate that it has small potential for return enhancement but good diversification potential. Is this correct?
I don’t think so schweser also states buyout funds have higher return than vanture funds, so they are inconsistent
in practice schweser states GIPS valuation based on market value , but we know since 2011 should based on fair value I always wonder why they ask for so high price but provide so low quality service
goodman2011 Wrote: ------------------------------------------------------- > I don’t think so schweser also states buyout > funds have higher return than vanture funds, so > they are inconsistent I think they said VC funds have higher potential return, but on average buyouts have better overall returns. Something like that.