[Verse 1] When private equity buys a company stake They bundle assets in a fund they make But how much is each investor's slice worth today? Net Asset Value shows the price you'd pay [Chorus] NAV equals assets minus debts divided by shares Total value minus what the fund declares it owes Then split among investors based on what each owns NAV - the snapshot price that everybody knows [Verse 2] Fund managers collect the money first Then hunt for deals to quench investment thirst They purchase firms with borrowed cash combined But valuing these stakes tests every mind [Chorus] NAV equals assets minus debts divided by shares Total value minus what the fund declares it owes Then split among investors based on what each owns NAV - the snapshot price that everybody knows [Bridge] Quarterly reports arrive with fresh appraisals Market multiples and cash flow calculations Since private stocks don't trade on public stages Estimating worth takes months through countless pages [Verse 3] Investors watch their NAV statements climb As portfolio companies mature through time From entry price to exit sale proceeds NAV tracks exactly how investment feeds [Chorus] NAV equals assets minus debts divided by shares Total value minus what the fund declares it owes Then split among investors based on what each owns NAV - the snapshot price that everybody knows [Outro] When funds distribute profits at the end Your final payout may exceed or bend Below the last reported NAV amount True performance is what really counts
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