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Upper Mid-Market Private Equity Fund
An independent practice case, not supplied or endorsed by the named firm.
Assess a 30% stake in a compliance-services business, with a shareholder loan, a hiring-led forecast and minority investor protections.
Assess a 30% stake in a compliance-services business, with a shareholder loan, a hiring-led forecast and minority investor protections. You have two hours and a template. Complete the three statements, calculate returns for exits in years 3 to 5 and prepare a short presentation.
The founders of Culgaith want to take some money off the table without giving up control, and have offered the fund a 30% stake for £62.0m, with closing on 31 December 2025, the company's FY25 year end. At the same time the fund would lend the company £6.0m as a shareholder loan to support its growth, and the company's existing bank debt would be re-tranched into two facilities.
The partner wants to know whether the deal is attractive at that price. Build the projection in the template you are given, work out what the price implies in valuation multiples, show the sources and uses, and calculate the fund's multiple of money (MoM) and IRR for an exit after three, four or five years across a range of exit multiples. Then put the key points on a few slides. The company carries debt and will keep using it, so show the credit statistics that matter.
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