hard · Private Equity value-creation

Calculate the 'Envy Ratio' for a management team that invests $5.0M for10.0%of the equity in an LBO where the sponsor invests $45.0M for 90.0%. At exit, the equity is worth $150.0M.

1. 9.00
2. 1.00
3. 2.50
4. 0.11

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