returns-analysis

To model IRR and MOIC sensitivity for a private equity deal, input your assumptions for entry and exit multiples, leverage, growth rates, and hold periods to generate returns sensitivity tables. This process outputs varying return scenarios for deal evaluation and stress testing.

Building an IRR sensitivity table requires inputs for entry and exit multiples, leverage, growth rates, and hold periods. Providing these operating assumptions allows the analysis to model returns and stress test the private equity deal structure effectively.

Yes, you can stress test private equity returns by adjusting entry multiples and leverage assumptions. The sensitivity analysis models IRR and MOIC across these varying deal structures and operating assumptions to evaluate returns under different financial scenarios.

The best way to generate MOIC sensitivity scenarios for investor reporting is modeling returns across growth rates and hold periods. This approach produces sensitivity tables based on entry and exit multiples, offering insights into various return exhibits for investors.

Yes, this sensitivity analysis works for varying hold period assumptions. By adjusting the hold period input alongside entry and exit multiples, leverage, and growth rates, you can effectively model IRR and MOIC returns for different private equity deal timelines.