Vintage year

[ayousaf]

Just done a question on a schweser mock and it says that vintage year is “the year in which initial investments are made”
In the CFAI glossary it says that “with reference to private equtiy funds, the year it is closed”
Can anyone please clear up this inconsistency?

 

[MrSmart]

It’s the former.

 

[AlmostDoneIII]

ayousaf wrote:
Just done a question on a schweser mock and it says that vintage year is “the year in which initial investments are made”
In the CFAI glossary it says that “with reference to private equtiy funds, the year it is closed”
Can anyone please clear up this inconsistency?

It’s the same diference… It’s when the 1st investment is made. A PE fund won’t make its 1st investment till it’s closed to new investors. If it does, then they will allow catchup contributions diluting existing people’s shares. That’s more then you asked, but hope that helps.