hard · Private Equity pe-core
In a Management Incentive Program (MIP), a PE sponsor invests $180M for 90% of the equity, while management invests $20M for 10%. At exit, the equity is worth $600M.
If a ratchet triggers giving management a total of 15% of exit proceeds, what is the 'Envy Ratio'?
- 0.6x
- 1.5x
- 3.0x
- 1.0x
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