medium · Private Equity pe-core
A venture capital fund holds $10M of Series A Participating Preferred stock in a startup with a 1.0x liquidation preference.
If the company is sold for $60M and the fund owns 20% of the equity on an as-converted basis, what is the fund's total payout?
- 10.0M
- 22.0M
- 20.0M
- 12.0M
Sign up free to see the explanation and track your rank →
More Private Equity pe-core practice
- If the GP receives a 20% carry on the profit from Deal A immediately, and the fund eventua
- Following the investment, what is the investor's ownership percentage in the company, assu
- What is the Interest Coverage Ratio?
- A private equity firm is calculating a 'Public Market Equiva… — If the KS-PME score is 1.1
- A sponsor provides an 'Equity Cure' to a portfolio company. What is the standard purpose o
- What is the new effective conversion price for the growth equity investor?
- Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on
- What is the company's Interest Coverage Ratio?