medium · Private Equity
An investor is evaluating an LP interest in a 4-year-old buyout fund with a 20M NAV. The buyer expects 35M in nominal future distributions over 6 years and 2M in future capital calls.
If the present value of distributions at a 17% discount rate is 20.9M and the PV of calls is 1.65M, what is the implied discount to NAV of the buyer's offer?
- 15.0%
- Premium of 4.5%
- 3.75%
- 8.25%
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