Calculate Kaplan Schoar PME (KS PME)

You can calculate the Kaplan Schoar PME ratio for your Private Equity Investments in Eagle Performance Calculation reports.

The Kaplan Schoar PME (KS PME) is a market-adjusted money multiple ratio. This uses the Total Value to Paid-In Capital (TVPI) formula to compare a private asset’s investment performance vs. the equivalent cash flows invested in a benchmark index.

A KS PME greater than one indicates that the investment has outperformed the benchmark index. A KS PME of less than one means the Private Asset has underperformed the benchmark index.

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KSPME Formula

The formula for the KS PME ratio:

Formula Dates and Inputs

There are two dates and four inputs for the calculation of the KS PME:

End Market Value

The market value for the private equity investments on the end effective date of the Performance Calculation report.

Sum of Contribution cash flows (Paid-In Capital)

The Total of all paid-in cash flows for the private asset investment throughout the date range of the Money Multiple field.

Sum of Distribution cash flows

The total of all paid out cash flows for the private asset investment throughout the date range of the Money Multiple field.

Private Equity Benchmark, Benchmark Unit Values, and Growth Factor

Each Private Asset must be assigned a benchmark fund. This is assigned at the security level using Reference Data Center. This value is saved to the PRIVATE_EQUITY_BENCHMARK column in the SECURITYDBO.SECURITY_MASTER_DETAIL and SECURITY_MASTER_DETAIL_HIST tables.