Private-equity partnerships can cash out of companies in the partnership's portfolio in the following ways:
I.an IPO of portfolio companies;
II.a trade sale to another firm;
III.a carve-out of portfolio companies;

Question

Quizplus · Accepted Answer

Private-equity partnerships can cash out of companies in their portfolio in the ways mentioned in options I and II i.e. an IPO or trade sale to another firm. Option III, which refers to a carve-out of portfolio companies, involves separating a part of a company from its parent company, which is not a direct way of cashing out. Hence, the correct answer is option C, which includes only options I and II.

Private-Equity Partnerships Can Cash Out of Companies in the Partnership's