How many deals does a PE shop have to look at before they find the ones they want to fund? The deal flow funnel below gives you some idea of the process and the attrition rate.
Nov 12, 2008
Private equity deal flow & returns
Private equity firms aren't seeking 10 or 20% returns. They want to buy businesses with fully-capped (unlevered) returns around 30% and cash on cash returns (levered) in the neighborhood of 50%.
How many deals does a PE shop have to look at before they find the ones they want to fund? The deal flow funnel below gives you some idea of the process and the attrition rate.
How many deals does a PE shop have to look at before they find the ones they want to fund? The deal flow funnel below gives you some idea of the process and the attrition rate.
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