medium · Private Equity paper-lbo

In a growth equity transaction, an investor provides $8.0 million and expects a 25% IRR over 5 years.

If the projected exit equity value is $100.0 million, what is the required ownership percentage for the investor, assuming no dilution?

  1. 24.4%
  2. 31.3%
  3. 20.0%
  4. 8.0%

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