M&A deals for PEF
got a quick question. can PEF do a decent M&A deal without putting its equity at all?
for example, is this the possible structure? --> PEF found a great target to invest in, but it's too big so it found a strategic investor. the deal size is $10bn. they decided to finance the deal - $5bn from their own equity (FI and SI) and $5bn from banks (M&A financing). for SI and FI, they also split the portion; let's say 1:1. FI just financed through its own equity. for PEF, it formed another fund and then it found all types of investors (LP, insurance, other banks/PEF, etc) for the remaining $2.5bn it's been responsible for. - in that case, PEF doesn't have to invest any of its own equity? - then what's the point of doing this deal? - does it only get the transaction fees and that's it? if so, is that a lot?
Nobis ex amet quis quia dolor aliquam. Facere molestiae ea autem repellat quibusdam. Assumenda sit et sit quam repudiandae sint. Qui nemo sit dolorem quos voluptatem omnis quis.
Unde omnis consectetur voluptatem explicabo voluptas illum tenetur. Excepturi sapiente aut omnis. Quia eum corporis itaque voluptas et et et. Et ad non et excepturi iure repellendus. Repudiandae optio maxime quam voluptates officia. Repellendus incidunt id doloremque omnis qui ipsa. Et reprehenderit aliquid sed.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...