Private Equity case studies, worked step by step

Cases
100
Traced to a firm
59
Topics
12
Hard
30
Topic
All topicsGrowth equity and software8Returns attribution and value creation8LBO modelling tests9Screening and ranking businesses9Distressed and special situations7Private credit and direct lending9Paper LBOs10Real estate and infrastructure8Portfolio operations and exits6Deal structuring and pricing9Fund, LP and portfolio analytics7Commercial and market cases10
Level
AnyWarm upCoreHard
Source
AnyReported at a firmStandard
Showing 21–30 of 59 · filtered from 100Clear filters
  1. 032Paper LBO on an oilfield services company whose EBITDA swings 30% either way with oil prices. Buy at 6x with 3.5x debt, exit at 6x in year 4. Work the return at trough, mid-cycle and peak, and say how much leverage a cyclical business can bear.Paper LBOsHardWarburg PincusNew York · 2017
  2. 033A laundry chain wants to enter a new city with three stores at Rs 1.2 crore of fit-out each. Each store handles 150 orders a day at Rs 250 with a 40% contribution margin and Rs 35 lakh a year of fixed cost. Is the entry worth it, and when does it pay back?Commercial and market casesWarm upAdvent InternationalBoston · 2021
  3. 035LBO test on a capex-heavy business: EBITDA Rs 90 crore, capex half of EBITDA every year. How much debt can it carry at 2.0x cover of EBITDA less capex over interest at 10%, and what IRR does a sponsor earn at 8x in and out with 8% EBITDA growth?LBO modelling testsCoreWarburg PincusNew York · 2017
  4. 036An airport services business at a regional airport handles 1.2 crore passengers a year: aero revenue is regulated at Rs 400 a passenger, non-aero revenue is Rs 180 a passenger and growing 10%, and traffic grows 7%. Value the business and say where the upside and the regulatory risk sit.Commercial and market casesCoreBain CapitalBoston · 2023
  5. 039Two funds of the same vintage: Mandala Fund III shows TVPI 1.9x, DPI 0.6x and a 21% IRR; Kshitij Fund II shows TVPI 1.7x, DPI 1.4x and a 17% IRR. Add a public market comparison and say which performance you trust more.Fund, LP and portfolio analyticsCoreNeuberger BermanLondon · 2022
  6. 041Buy an office park on Rs 60 crore of net operating income at an 8% cap rate with 60% debt at 9%. NOI grows 4% and you sell at an 8% cap after five years. Work the unlevered and levered returns, with no waterfall.Real estate and infrastructureCoreCarlyle GroupWashington · 2015
  7. 042Rank four businesses in one auto supply chain as buyout investments: a steel supplier, a component maker, a vehicle maker and a dealer group. Margins, capex, customer concentration and bargaining power are given.Screening and ranking businessesHardTPGSan Francisco · 2018
  8. 045Take-home: four deals with dated cash flows. Compute each deal's MOIC and IRR, then the pooled IRR of the four together, and explain why the pooled IRR is not the average of the deal IRRs.Fund, LP and portfolio analyticsHardBain CapitalBoston · 2024
  9. 046A direct-to-consumer cosmetics brand has 20 lakh monthly visitors, 2.5% conversion, an average order of Rs 900 and 35% of buyers coming back within a year. Build annual revenue and say which lever the sponsor should push first.Commercial and market casesCoreBain CapitalBoston · 2023
  10. 049Fill the blank lines of a sources and uses template: enterprise value Rs 900 crore including Rs 200 crore of existing debt to refinance, fees of Rs 25 crore and Rs 20 crore of minimum cash funded at close. Sources are a Rs 450 crore term loan, Rs 150 crore of notes and sponsor equity. What is the equity cheque?LBO modelling testsWarm upCarlyle GroupNew York · 2023

Company names and figures are illustrative.