CPEP™ Exam

CPEP™ exam aims to assess the candidates' potential and ability to effectively perform an array of tasks across the entire spectrum of sub-domains within private equity and venture investing. The exam is based on IFIS™ Knowledge Architecture for Practice Excellence standards and the CPEP™ body of knowledge.

CPEP™ exam evaluates candidates on their knowledge of the principles, theories, and generally accepted analysis and decision-making techniques, approaches, methods, and practices in private equity and venture investing. Candidates are expected to read the USPEC Private Equity Handbook and stay updated with the latest practices by reading journals and books, listening to experts' podcasts, and participating in professional development programs and events.

USPEC assessment policy prescribes multi-stage evaluation to qualify candidates for the award of the CPEP™ charter.

All candidates are required to complete three components of assessments, the first two of which are assignment submissions. These assignments are based on simulations of real-life analysis and decision situations typically faced by private equity professionals. The submissions must conform to the prescribed format and can only be completed on the candidates' myUSPEC dashboard.

While candidates have up to 365 days after registration to complete and submit the assignments on their myUSPEC dashboard, the final component—the CPEP™ exam—must be taken on the ExamStrong portal at a pre-booked schedule.

The CPEP™ exam covers a broad range of private equity topics, which the CPEP™ body of knowledge deems essential for candidates aspiring to become CPEP™ Charterholders. The framework and coverage of the CPEP™ exam are accurately fleshed out in the USPEC Handbook of Private Equity, which is provided to every CPEP™ candidate. Candidates are expected to have a basic understanding of business fundamentals, accounting, and finance to facilitate their learning of private equity in a more efficient and in-depth manner.

The CPEP™ exam adheres to the IFIS™ framework, which focuses exclusively on the mechanics and analysis of private equity and avoids basic accounting and finance concepts. USPEC has designated the following topics as the areas in which candidates' knowledge will be assessed:

Knowledge Areas & Topics

A typical exam generally includes 50 multiple-choice questions, some of which are domain knowledge-based, while others are numeric or argument-based.

Domain Knowledge-based Questions

These fact-based questions directly test the candidates' ability to recollect concepts, principles, techniques, and generally accepted practices in contemporary Private Equity. Candidates' answers to these questions will reflect their awareness and comprehension of critical concepts and issues as covered in the CPEP™ body of knowledge.

Numeric or Argument-based Questions:

These are Numeric or Argument-based questions that directly test the candidates' ability to apply and execute their awareness and understanding of the concepts and principles in the practice of Private Equity in real-world scenarios at an advanced level. Candidates' answers to these questions will reflect their capacities for critical analysis and judgment in gauging decision challenges.

Note: There is only one correct answer to domain knowledge-based and numeric or argument-based questions, and candidates are scored only if the correct option is selected.

To ensure all CPEP™ candidates achieve their full potential and become top-notch professionals in the industry, USPEC strongly recommends that they engage in extensive reading on the subject from a variety of sources and focus on widening their perspective of private equity. Young professionals aspiring to break into and grow their careers in the Private equity space require to put in more efforts. While the CPEP™ Exam Preparation Material contains books and guidelines on how to study for the exam, additional research should be done to properly prepare for the exam. Private equity is an evolving discipline and will perhaps never become an exact science, making containing the entire practice of Private equity into a single textbook impossible. USPEC has evolved its essential knowledge model in what is the world’s largest project on defining knowledge essentials for excellence in Private equity.

USPEC has done its part to cover the extensive breadth of Private equity to assure that the CPEP™ charter makes an impact on the professional capabilities of the candidates. CPEP™ candidates are advised to use the USPEC Handbook & Casebook on Private Equity as the master references to prepare for their exam.

Usually, a candidate scoring 65%- 70% in the exam qualifies for the CPEP™ Charter. However, a candidate’s individual scores do not decide the recommendation for the award. Instead, a complex algorithm is used to make the program completion decisions, nullifying geographic and other environmental factors that can potentially skew performance. Hence, the pass/ qualification score may not always stay pegged between 65%- 70%.

The CPEP™ exam is held to the highest standards in test delivery, using Question and Test Interoperability norms and Portable Custom Interaction Best Practices. The exam can be taken online through the secure ExamStrong platform from a private (personal) space, ensuring compliance with rigorous testing and credentialing standards. The USPEC test engines on ExamStrong are fortified by robust technology and process management policies, ensuring the exam is conducted in a fair, zero-lag, cheat-deterrent, and candidate-friendly environment.

We recommend candidates to take the mock exam 24 hours before they appear for their scheduled exam to ensure that their system meets the requirements. Attempting the mock exam will also ensure the candidates are familiar with the identification process and ensure a smooth exam experience.