hard · Private Equity & LBOs
A growth equity fund targets a 25% IRR over 5 years on an $8M investment. The company currently has $5M EBITDA growing at 15% p.a. and expects to exit at a 7.0x multiple with $3M of net debt.
If the fund expects 10% dilution from future rounds, what ownership stake must it acquire today?
- 40.2%
- 36.2%
- 45.0%
- 32.6%
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