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CFA Level 2
Alternative Investments

Common Exit Strategy in Private Equity

Easy Private Equity Valuation Exit Strategies

In private equity investing, exit strategies are crucial for realizing returns on investment. An exit strategy defines how the private equity firm plans to sell its investment in a portfolio company to generate profit. Common exit strategies include initial public offerings (IPOs), secondary sales, and acquisitions by other companies.

Which of the following is generally considered the most common exit strategy for private equity firms?

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