hard · Private Credit portfolio-management-monitoring-workouts
A $10,000,000 investment in a Growth Equity round is made at a $40,000,000 pre-money valuation. The investor has 'Full Ratchet' anti-dilution protection. One year later, the company raises a down-round at a $25,000,000 pre-money valuation.
What is the investor's new ownership percentage after the down-round, assuming the down-round itself was a $5,000,000 injection?
- 20.00%
- 40.00%
- 33.33%
- 25.00%
Sign up free to see the explanation and track your rank →
More Private Credit portfolio-management-monitoring-workouts practice
- If the total Enterprise Value is $300M, the Senior Secured Debt is $250M, and the Senior U
- If the lender's cost of capital is 10%, what is the approximate 'Economic Loss' compared t
- What is the primary impact on the fund's performance multiples?
- If NewCo's post-restructuring EV is $200M and it has $120M in new senior debt, what is the
- What is the likely 'Unsmoothed' volatility of the portfolio?
- If the business is liquidated for $200M, what is the recovery rate for the Second Lien len
- According to the standard Inter-creditor Agreement (ICA) priority, how much does the Senio
- Which statement accurately describes the recovery for the Mezzanine holders?