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CFA Level 1
Equity Investments

Common Exit Strategy for Private Equity

Hard Equity Markets And Instruments Private Equity

In the realm of private equity, firms typically engage in acquiring companies with the aim of enhancing their value over time. One important aspect of this process involves the stages of investment and how funds are structured. A notable stage of private equity investment is the exit phase, wherein the firm seeks to realize its investment gains.

Which of the following represents the most common exit strategy used by private equity firms to liquidate their investments in portfolio companies?

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