CFA Level III Private Markets
Level III Private Markets
20 MCQs · Answers & explanations · 25 pages
Private Markets pathway
Free CFA Level III Private Markets MCQ PDF
20 multiple-choice questions with answers and explanations. Get the PDF in one email. Work through the questions at your own pace, on screen or on paper.
Inside your inbox
Questions first. Explained answers next.
Preview the actual covers. Request this file free by email.
Your PDF includes
CFA Level III Private Markets
20 MCQs · 25 pages
Explained answers
Multiple-choice practice for the Private Markets pathway. This PDF does not contain written-response exercises.
- Answers explained, so you can learn from every choice
- Printable PDFs you can keep and revisit
- No account or payment required
20
Distinct MCQs
1
PDF to keep
$0
No payment
Get your free study pack.
One PDF, delivered by email. Yours to keep.
Choose your pack
Enter your email
Check your inbox
A sample from the MiloPrep question bank.
Know what you are downloading
The actual topics and question mix
This is the question distribution in this PDF, rather than the official exam topic weights. It is selected practice with explanations, not complete curriculum coverage or a full mock.
MCQs in this PDF
- Selected common core
- 12 (60%)
- Pathway questions
- 8 (40%)
The 12 common-core questions also appear in the other two Level III PDFs. Each pathway adds eight different MCQs. Written responses are not included.
Turn the sample into a study loop
Attempt
Work the questions before opening the answer section.
Explain
Find the rule or case fact behind the correct answer.
Check again
Use a fresh question to test the method you repaired.
Selected practice with explanations. Finishing the sample does not establish exam readiness.
CFA Level III - Private Markets
5 original cases, four MCQs per case. Read the vignette and exhibits before the questions.
| Topic | MCQs | Share |
|---|---|---|
| Asset Allocation | 4 | 20% |
| Portfolio Construction | 4 | 20% |
| Ethics and Professional Standards | 4 | 20% |
| Private Markets Pathway | 8 | 40% |
The common-core areas listed above contribute 12 MCQs. The pathway contributes 8. This file contains no written-response exercises; the topic list shows its selected coverage.
Read one explained question before requesting the PDF
From CFA Level III - Private Markets: Private Markets Pathway. This question and its case, when present, are included in the downloadable PDF.
Private Market Portfolio Construction for Vernon Pharma
Amara Fitzgerald, CFA, is advising the investment committee of the Vernon Pharma Defined Benefit Pension Plan on its private market asset allocation. The plan manages $1,000 million in total assets, has an 18-year liability duration, and is 108% funded. Vernon Pharma's investment policy requires maintaining a minimum liquidity buffer of $120 million in cash equivalents and liquid public securities to meet ongoing retiree benefit disbursements. The plan seeks to deploy surplus capital into private markets to capture the illiquidity premium without breaching its liquidity constraint.
Fitzgerald reviews the cash flows and valuation metrics for the plan's two active closed-end fund investments, presented in Exhibit 1. Private Equity Fund Alpha is a middle-market buyout fund currently in its harvesting stage. Private Debt Fund Beta is a direct lending partnership. To support liquidity planning for future capital calls, the committee evaluates the total uncalled capital obligations across both funds and considers the net proceeds from potentially selling the LP interest in Private Debt Fund Beta on the secondary market.
Following the portfolio review, Fitzgerald addresses trustee questions regarding private asset governance rights, the role of the plan's long liability horizon in absorbing capital lockups, and the structural drivers of private market return dispersion.
Exhibit 1: Selected Data for Vernon Pharma Closed-End Fund Holdings ($ millions)
| Fund | Committed Capital | Paid-in Capital | Distributions to Date | Reported NAV |
|---|---|---|---|---|
| Private Equity Fund Alpha | 80.0 | 50.0 | 15.0 | 65.0 |
| Private Debt Fund Beta | 60.0 | 40.0 | 10.0 | 42.0 |
Based on Exhibit 1, the total value to paid-in (TVPI) multiple for Private Equity Fund Alpha is closest to:
- A.1.30x.
- B.1.60x.
- C.0.30x.
Answer: B
Total Value to Paid-in (TVPI) measures total cumulative value generated per dollar of paid-in capital: (Distributions + Reported NAV) / Paid-in Capital = ($15.0 million + $65.0 million) / $50.0 million = $80.0 million / $50.0 million = 1.60x.
How to use this PDF in a study session
1. Attempt with a clear purpose
Use the common-core cases alongside the Private Markets cases on portfolio construction and private-credit manager review. Record which case facts affect liquidity, structure or the investment decision.
2. Review the reasoning
Distinguish an attractive reported result from the evidence needed to evaluate the proposed investment. Explain how the case’s constraints affect your answer before checking the provided reasoning.
3. Choose fresh follow-up work
Practise additional current-year pathway outcomes and written responses separately. The eight pathway MCQs are selected examples, and the 12 common-core questions repeat in the other two Level III PDFs.
Keep a simple record: question number, the rule or case fact you missed, and the fresh exercise you will use to check the correction. Since the explained sample above is already visible, mark it as reviewed if you saw its answer before attempting the file.
Take a look inside
Your next study session, sorted.
20 questions in every PDF. Answers included.
Try the questions first
Set aside a focused block of time. Work through 20 questions before turning to the answers.
Understand your answers
Review the explanations and identify the concepts you want to revisit.
Make it your own
Print the PDF, mark it up, or save it on your device for your next review session.
Original practice material from MiloPrep. These are sample questions, not a full mock exam or official exam questions.
Good to know
What will I receive?
One PDF with 20 MCQs, including answers and explanations.
Do I need an account?
No. Enter your email to request the pack. An account is only needed if you choose to practice in the app.
What if the email has not arrived?
Allow a few minutes and check your spam or promotions folder. Repeat requests for the same pack have a 15-minute cooldown.
Will I receive other emails?
Yes, the monthly MiloPrep newsletter. Every email includes an unsubscribe link.
Keep the momentum
Ready to practice online?
Explore interactive questions, explanations, and saved progress in MiloPrep.
Create your free account