Topic Test Alternative Investments Arbuckell

The answer to question 1 implies that " vintage year effect" is a benchmark bias for private equity. How is it a bias? From my understanding, it enables better comparison of funds at similar life-cycle stage, and is thus an advantage, not a bias.

What am i missing?

Vintage year bias means the over or under weighing in specific vintages. In good years, PE firm shows good return than bad years. So choosing a specific vintage year would cause bias.

Ah. Now it makes sense. Thanks