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CFA Level 2
Alternative Investments

Private Equity Exit Strategies

Easy Private Equity Valuation Exit Strategies

In the context of private equity investments, exit strategies are critical for investors to realize returns on their investments. The three primary exit strategies include an initial public offering (IPO), a strategic sale, and a secondary buyout. Each of these strategies has its own advantages and considerations.

Imagine a private equity firm that has held an investment in a successful technology startup for several years. The firm is now considering how to exit the investment at a time when the market for technology stocks is particularly favorable.

Please select the most appropriate exit strategy for this scenario.

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