easy · Private Equity
A PE fund acquires a business for $400M using $250M of debt. Three years later, the company is worth $500M and debt has been paid down to $150M. The sponsor executes a dividend recap by borrowing an additional $100M and paying it out.
What is the sponsor's current unrealized equity value in the company?
- $350M
- $250M
- $450M
- $150M
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