medium · Private Equity
A secondary buyer evaluates a $20M NAV interest in a buyout fund. They project nominal future distributions of $35M over 6 years with a Year 1-6 profile of $3M, $6M, $10M, $8M, $5M, and $3M.
If the buyer's target IRR is 17% and they assume $2M in remaining capital calls (PVed at $1.65M), what is the approximate offer price (implied as a % of NAV)?
- 96.3%
- 104.5%
- 75.0%
- 85.0%
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