▲ 4 r/private_equity
What Would You Do? PE vs Sovereign Wealth Fund
Picture mid-market business - solid EBITDA and high growth. Young-ish ownership/management.
Two minority offers.
Option 1. PE with specialization in the field. 10% more enterprise value. Preferred shares with a PIK of 10%. Modest leverage (1x EBITDA).
Option 2. Sovereign wealth fund. Evergreen, no timed exit necessary. Greater leverage (2x EBITDA).
Curious if, from a qualitative perspective, anyone has strong insights or opinions. Thanks.
u/FakePlantonaBeach — 1 day ago