DSCR / EV

Say infrafund has secured acquisition financing sculpted on 1.5x DSCR which results in a total debt balance of $250m but my total EV using unlevered FCF and a target project IRR of 10% is only $180m. What happens in this scenario? Am I misunderstanding something. 

Do I assume less debt, and if so, what would the cap. structure look like and how much equity would go in?

When calculating my equity IRR I am just solving for how much equity I can pay to achieve my target IRR and so should I just be adding debt on top of that to reach the EV at target project IRR?  

1 Comments
 

Corporis blanditiis hic dolor aut nobis. Dolorem amet nemo non. Unde velit natus debitis unde nostrum ab vero. Tempore et nihil voluptatem.

Quod eaque iste aut laboriosam voluptatem iusto rem culpa. Cum ut quod officia provident velit voluptatem tempore. Facilis ut dolor rerum velit distinctio voluptatem officiis. Quia voluptatem amet et odio ratione. Minus tempora aliquam atque ipsa dolorem. Voluptatum rerum facere optio exercitationem aspernatur. Ut sit dolores exercitationem quis eos et.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • JPMorgan 01 98.3%
  • Guggenheim Partners 01 97.7%
  • Morgan Stanley 07 97.1%

Overall Employee Satisfaction

July 2026 Investment Banking

  • Moelis & Company No 99.4%
  • Evercore No 98.8%
  • Morgan Stanley 01 98.3%
  • BMO Capital Markets 13 97.7%
  • Banco Santander 01 97.1%

Professional Growth Opportunities

July 2026 Investment Banking

  • Evercore 01 99.4%
  • Moelis & Company 01 98.9%
  • Morgan Stanley 06 98.3%
  • Goldman Sachs 01 97.7%
  • JPMorgan 01 97.1%

Total Avg Compensation

July 2026 Investment Banking

  • Vice President (15) $434
  • Associates (46) $258
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (22) $179
  • Intern/Summer Associate (13) $156
  • 1st Year Analyst (80) $150
  • Intern/Summer Analyst (73) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
kanon's picture
kanon
99.0
4
Secyh62's picture
Secyh62
99.0
5
Betsy Massar's picture
Betsy Massar
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
GameTheory's picture
GameTheory
98.9
9
DrApeman's picture
DrApeman
98.9
10
Mimbs's picture
Mimbs
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”