Which of the following is an exit opportunity in private equity?

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Multiple Choice

Which of the following is an exit opportunity in private equity?

An exit opportunity is any path that monetizes the investment and returns capital to investors. The sale of the business to a sponsor or strategic buyer is the clearest exit because it transfers ownership to another party and provides cash proceeds, completing the investment cycle and realizing the PE fund’s returns.

The other options don’t exit the investment: a secondary rights issue raises more capital from existing or new investors without selling the stake; reinvesting in the same company at the same cap structure keeps ownership and continues the investment; increasing dividend payouts without selling extracts cash without transferring ownership. So, selling to a sponsor or strategic buyer is the best exit path.

Which of the following is an exit opportunity in private equity?

Study for the Private Equity Interview Test. Prepare with a range of questions and expert explanations to ensure success in landing your dream role. Optimize your readiness for the interview process!

Which of the following is an exit opportunity in private equity?

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