hard · Private Equity
A fund's 'General Partner' (GP) is modeling a Management Incentive Plan (MIP) that grants 10% of the fully-diluted equity at an entry strike price of $200M.
If the company is sold for $600M in equity value five years later, what is the payout to the management pool using the Treasury Stock Method?
- $54M
- $48M
- $60M
- $40M
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