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