medium · Private Equity & LBOs
A venture capital fund holds $10M of Series A Participating Preferred stock in a startup with a 1.0x liquidation preference.
If the company is sold for $60M and the fund owns 20% of the equity on an as-converted basis, what is the fund's total payout?
- 10.0M
- 22.0M
- 20.0M
- 12.0M
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