alleryStart learning →Limited partners use IRR in private equity to judge the:
Ageneral partner's performance
Bcustodian's fee structure
Clender's credit rating
Dregulator's compliance record
Answer & Solution
Correct answer: A. general partner's performance
The general partner controls the timing of cash flows, so the IRR reflects how well the partner managed the investments.
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Related questions
The same return received later gives an IRR that is:If cash flows are random variables, as in a life annuity, IRR uses their:The AIRR approach of Magni was introduced to solve problems of:In personal finance the IRR measures what type of performance?With no capital constraint, which projects does a firm accept to maximize value?Mutually exclusive projects are those from which:The equivalent annuity method divides the NPV by what to annualize it?The equivalent annuity method is often used to compare projects of: