Evaluating Exit Strategies in Private Equity

In the world of private equity, exit strategies are crucial for realizing returns on investments made in portfolio companies. An investor is evaluating three potential exit strategies for a technology-focused private equity fund. Each strategy entails different implications for the valuation and ultimate success of the investment. Understanding which exit strategy typically maximizes the value returned to investors can be critical in determining future fund allocations and investment decisions.

Consider the following exit strategies: