02. Equity Dilution and Equity Concentration

Measure how GP equity returns are influenced by capital raising, management option pools, and security types (e.g., participating preferred).

 

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Key Concept: The GP or Fund’s equity value (FEqV) can be expressed as the product of total shareholder equity value (TEqV) and a fund ownership percentage (φ). This allows analysts to break the GP or Fund’s return into a dilution-neutral return (Isomeric Return) and a dilution/concentration component (Fund Ownership Impact).

 


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