Evaluating the Best Exit Strategy in Private Equity

In the context of private equity investments, exit strategies are critical for the realization of returns. A private equity fund has successfully invested in a mid-market company known for its innovative technology solutions. After years of growth and value creation, the fund's managers are evaluating the best exit strategy to maximize their investment returns. They are considering various options including a secondary buyout, an initial public offering (IPO), and a strategic sale to a larger competitor.

Which exit strategy is likely to provide the best value realization for the private equity fund if market conditions are favorable for technology firms and public markets are robust?