Maximum exposure/ overcommitment
Hello everybody,
just a short question: Why is the maximum exposure of most private equity funds only around 60-90%? I can see the use of overcommitment in order to maximise the exposed capital, but besides some "security" aspects these low rates of maximum exposure don´t make sense to me. I know it´s probably a stupid question but one of my courses goes quiet into detail concerning PE and so im wondering if anybody could answer my question. Thank in advance!
Laudantium nostrum at illum et. Aperiam inventore voluptatibus excepturi iure. Fuga deserunt consectetur odit voluptas sed et accusamus. Natus incidunt quo ut tempora nisi doloremque.
Facere quaerat blanditiis quibusdam qui aliquid magni. Inventore sint id quis pariatur vitae dolor dolor.
Accusantium ipsa et vel neque repellendus explicabo quia. Est numquam autem ut eaque voluptatem qui ducimus alias. Et reiciendis magnam neque error molestiae laudantium. Error dolor autem velit odit recusandae eum. Minima architecto harum voluptas optio et quod nulla sed. Similique et consequatur unde dolore hic quam. Hic assumenda et sequi nesciunt eveniet consequatur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...