NO.PZ2018111302000070
问题如下:
An investor asks the analyst to explain how a buyout fund can create value. The analyst responds:
“Private equity funds primarily finance their acquisition of portfolio companies with equity. When they do access credit markets, they do so on less favorable terms than comparable public companies, but they can usually offset their relatively higher borrowing costs by re-engineering the underlying portfolio companies to improve their overall profitability.”
Which of the analyst’s statements regarding value creation by private equity funds is most accurate?
选项:
A.The statement regarding corporate re-engineering
The statement regarding credit market terms
The statement regarding method of financing
解释:
A is correct. Private equity funds increase value by taking on high levels of debt on favorable terms. They are able to offset their borrowing costs by superior reorganization and re-engineering capabilities.
B is incorrect. Private equity funds obtain favorable terms from credit markets based on their reorganization skills which lead to value enhancement.
C is incorrect. Private equity funds increase value by taking on high levels of debt on favorable terms, rather than equity.
课程中说value creation有3条,一个是re-engineer 是说能重新驱动公司业务增长,人员架构;一个是obtain debt ,说的是通过debt降低融资成本,另一个是alignment of interest说的是PE和公司对股权目标更一致做大做强。题中说的是能降低融资成本,所以为什么不是B选项或者C选项