medium · Private Credit & Debt fund-structures-returns-economics
A sponsor invests $180M for 90% equity, and management invests $20M for 10%. A ratchet provision stipulates that if the fund achieves ≥ 2.5× MOIC, management's stake increases to 20%.
If the total exit equity value is $600M, what is the 'Envy Ratio'?
- 2.25x
- 2.00x
- 1.50x
- 3.00x
Sign up free to see the explanation and track your rank →
More Private Credit & Debt fund-structures-returns-economics practice
- What is the fund's TVPI (Total Value to Paid-In) multiple?
- What is the Dividend Coverage ratio?
- What is its current Debt-to-Equity (Leverage) ratio?
- A BDC (Business Development Company) is required to distribu… — What is the primary benefi
- An investor is reviewing a fund's performance and sees a DPI… — What does this suggest abo
- If the fund's net TVPI is only 1.15×, what is the most likely explanation?
- If management achieves a 6.0x Money Multiple (MOIC) on their personal investment, while th
- What is the Sponsor's Money Multiple (MOIC)?