medium · Private Equity
A sponsor calculates the 'Exit Equity' for an LBO. Exit EV is 800 million, exit debt is 250 million, and there is a management option pool representing 10% of the fully-diluted exit equity proceeds (with a strike price of zero for simplicity).
What is the sponsor's share of the exit proceeds?
- 550 million
- 225 million
- 720 million
- 495 million
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