What are the typical exit routes for a private equity sponsor?

Question

Accepted Answer

Four standard routes Route Middle-market Multiple range Strategic Sale 35–45% 1.1–1.3x EV Sponsor-to-Sponsor 30–40% 0.95–1.05x IPO 5–15% 0.9–1.1x with discount MBO 5–10% 0.9–1.0x Strategic Restructuring <5% distress-dependent Pitch tip Model the options in the IC memo — Strategic Sale as the base ca

Route	Middle-market	Multiple range
Strategic Sale	35–45%	1.1–1.3x EV
Sponsor-to-Sponsor	30–40%	0.95–1.05x
IPO	5–15%	0.9–1.1x with discount
MBO	5–10%	0.9–1.0x
Strategic Restructuring	<5%	distress-dependent