A private equity fund: I.is set up as a limited partnership
II)usually uses a 2/20 fee structure
III)place no constraints on manager compensation
IV)typically have a stated life of 7 to 10 years

Question

Quizplus · Accepted Answer

I is correct as private equity funds are typically set up as a limited partnership. 
II is correct as private equity funds usually use a fee structure of 2% of assets under management and 20% of profits. 
III is incorrect as private equity funds usually do place constraints on manager compensation. 
IV is correct as private equity funds typically have a stated life of 7 to 10 years.

A Private Equity Fund: I