hard · Private Equity pe-core
Management at BuildCo participates in a Management Equity Programme (MEP) with a 10% 'Sweet Equity' pool.
If the sponsor invests $180M for 90% and management invests $20M for 10%, and a ratchet increases management's stake to 20% if the fund achieves a 2.5x MoIC, what is management's MoIC if the total exit equity is $600M?
- 4.5x
- 6.0x
- 3.0x
- 2.5x
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