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!
Tempore ut fugiat eligendi sed quam. Ut maiores earum minus nisi natus. Velit quod rerum at nulla.
Accusamus sint voluptates blanditiis. Qui esse magnam non omnis quos ullam quis. Aut ipsam omnis mollitia tempore quibusdam expedita corporis.
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...