Reference no: EM133113489
Organization, Compensation, Regulation and Limited Partners
Q1. What is a difference between the organizational structure of private equity funds and hedge funds?
Q2. What are similarities and differences in the compensation structure for private equity funds and hedge funds?
Q3. What are the primary exit strategies considered by private equity firms?
Q4. Discuss whether or not the tax rates applicable to private equity firms should be changed?
Q5. In the U.S., what provisions have private equity funds historically relied on to avoid registration with the SEC? How has the Dodd-Frank Act changed regulation of private equity funds?
Q6. Why is there a secondary market for private equity funds, but not hedge funds?
Q7. Based on HCA buyout Exhibits in Chapter 19, calculate the value of the financial sponsors' equity stake in HCA, based on FASB 157's fair value determination requirements. Assume HCA's EBITDA dropped by 20% from its LTM EBITDA at the time of the transaction, no debt has been paid down, and valuation multiples have decreased to 6.5x.