What is the valuation for gps

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Reference no: EM133061426

EBV has invested a $10M Series A investment in Newco. EBV estimates three possible outcomes with an expected exit time in 5 years with final ownership fraction of 5%. LPs expected rate of return is 10%.

I. a 30 percent probability for a successful exit, with an exit valuation of $500M.

II. a 20 percent probability of failure with $0 value.

III. Redemption of original investment with 2x liquidation preference.

What is the valuation for GPs?

Reference no: EM133061426

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