CFA Level I Alternative Investment Performance and Returns question

Alternative Investment Performance and Returns sample question

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Alternative Investments

Alternative Investment Performance and Returns

Helios Buyout Fund III acquires a company for USD100 million at the start of Year 1, funding the purchase entirely with a subscription credit line. At the end of Year 1, the fund calls USD100 million from its limited partners and repays the line's principal. The company is sold at the end of Year 2 for USD160 million; USD4 million of accrued credit line interest is paid from the sale proceeds, and the remaining USD156 million is distributed to the limited partners. Measured from the limited partners' cash flows, the fund's since-inception IRR is closest to: