Happy New Year!
(1) I have ancoming up where I have been asked to consider investing in a fintech private nonbank lender (think prosper, commonbond, etc.). Any ideas which valuation methods would work best for these guys? What multiples would you use?
(2) Judging from their public peers like Lending club and OnDeck, these guys have loans and debt on, which I was thinking of using an equity multiple (like P/E) for comparison but then that just gives me implied market value of equity. When I try to calculate MoM and returns, can I directly use and calculate distributions and ignore incorporating Debt and Cash? (Since this is just an investment, not a no leverage included)
(3) Where can I find a sample PE model where Equity multiple is used in return analysis? (Assuming this is the right approach)
Thank you so much!!!!
Private Equity Interview Course
- 2,447 questions across 203 private equity funds. Crowdsourced from over 500,000 mem.
- 9 Detailed LBO Modeling Tests and 15+ hours of video solutions.
- Trusted by over 1,000 aspiring private equity professionals just like you.