medium · Private Credit & Debt loan-structures-instruments
A venture debt lender provides 10M to a startup at a 12% interest rate. The loan includes warrants for 1% of the company.
If the company is sold in 2 years for 500M and the lender is repaid at par with all interest, what is the gross IRR (ignoring dilution)?
- 12.0%
- 62.0%
- 31.2%
- 22.0%
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