Medium Private Equity & LBOs Practice Questions

191 free medium-difficulty Private Equity & LBOs questions, drawn live from KomFi's calibrated bank. The exam backbone: the difficulty band where most scoring happens.

  1. What is the realized loss for the selling LP on a cash-on-cash basis?
  2. If the firm targets a 25% IRR, what is the required post-money ownership percentage (assuming no future diluti
  3. What is the warrant payoff at exit?
  4. Using a 17% target IRR, what is the buyer's offer price?
  5. If the embedded cost of debt is 4.5%, what is the total 'Allowed Return' dollar amount?
  6. Calculate the 'Allowed Revenue' for a utility with OpEx of $80M, Depreciation of $40M, Taxes of $20M, and a Ra
  7. If SOFR is 4%, what is the approximate all-in yield (IRR) for the first year, assuming no principal repayment?
  8. If the total shares outstanding (including the new round) is $20 million and the new round issued 5 million sh
  9. If the sponsor achieved a 2.18× MoIC, what is the approximate IRR?
  10. What is the effective pre-money valuation from the founders' perspective after accounting for the option pool
  11. If the fund has invested $400m and realized $120m (at cost), what is the management fee in Year 6?
  12. If 60% of LPs elect to roll into the new vehicle, what is the total amount of 'New Secondary Capital' required
  13. An LBO analysis estimates a company can support $400m of deb… — What is the minimum LTM EBITDA required to sup
  14. If the loan is refinanced at the end of year four, what is the approximate gross yield to maturity (YTM)?
  15. If the fund distributes $380M in Year 5 and the total preferred return is calculated as $93.9M, how much total
  16. After 4 years, EBITDA has grown to $40.8M and debt has been paid down from $126M to $33.6M. If the exit multip
  17. If the blended interest rate is 8%, which constraint is more restrictive for the initial debt capacity?
  18. In an LBO 'Sources and Uses' table, the target has $10M of e… — How should this be treated to find the 'Sponso
  19. What is the outstanding principal balance at the end of Year 2, assuming no early prepayments?
  20. What is the RVPI?
  21. If the company has $40M in receivables ($5M overdue >90 days) and $20M in inventory, what is the maximum draw?
  22. An LP commits $100M to a private equity fund with an 8% preferred return (compounded annually) and a 20% carri
  23. If the company is sold for 3.0× the total exit equity, what is management's MOIC?
  24. What is the buyer's offer as a percentage of NAV?
  25. If they plan to reach their target NAV of $7.5B over 5 years, what is the approximate steady-state annual comm
  26. If transaction fees are $10M, what is the gross dividend paid to the sponsor (assuming 100% ownership for simp
  27. At what price does the note convert?
  28. How much 'carried interest' can the GP distribute immediately from this exit?
  29. If the debt has a blended interest rate of 8% and the lender requires a minimum interest coverage ratio of 2.5
  30. If it is required to maintain a Fixed Charge Coverage Ratio (FCCR) of 1.5x, what is the maximum mandatory debt

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