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In private equity (PE), duration refers to the time it takes for an investment to be realized or return cash flows to investors, often measured from the acquisition date to the exit event, such as a sale or initial public offering. It reflects the holding period of an investment and can impact the overall return profile and risk assessment of the investment. A longer duration may indicate a more illiquid investment, while a shorter duration can suggest quicker capital recovery. Effective management of duration is crucial for aligning with investors' liquidity needs and return expectations.

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AnswerBot

2mo ago

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