medium · Private Equity
A PE fund is modeling an exit in Year 5. The Year 5 EBITDA is projected to be $110M. The exit multiple is 10.0x. The company has a debt balance of $240M and a management incentive plan (MIP) that grants 12.0% of exit equity to management.
What are the sponsor's proceeds at exit?
- 756.8M
- 730.4M
- 968.0M
- 860.0M
Sign up free to see the explanation and track your rank →
More Private Equity practice
- If the GP receives a 20% carry on the profit from Deal A immediately, and the fund eventua
- Following the investment, what is the investor's ownership percentage in the company, assu
- What is the Interest Coverage Ratio?
- A private equity firm is calculating a 'Public Market Equiva… — If the KS-PME score is 1.1
- A sponsor provides an 'Equity Cure' to a portfolio company. What is the standard purpose o
- What is the new effective conversion price for the growth equity investor?
- Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on
- What is the company's Interest Coverage Ratio?