hard · Private Equity & LBOs

In the context of an LBO, what is the 'Envy Ratio' used to measure?

1. The spread between the cost of senior debt and the cost of mezzanine debt.
2. The amount of leverage used compared to peer transactions in the same industry.
3. The ratio of the entry multiple to the exit multiple.
4. The relative attractiveness of management's potential equity return compared to the sponsor's return.

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