Private Equity – Returns, Professional Excel Model
Originally published: 03/06/2023 02:13
Publication number: ELQ-59433-1
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Private Equity – Returns, Professional Excel Model

Professional Private Equity LBO (Leveraged Buyout) - Returns Analysis Model

This is a model to calculate the future returns to Limited Partners (LPs) and lenders for an emerging Private Equity (PE) fund that uses leveraged buyouts (LBO) to generate a return. 

It is typically used by emerging PEs that need a structured and systematic process to evaluate the expected returns for fundraising purposes and project future fund expenses and start-up costs.

This is a relatively straightforward and simple model with 3 tabs:

1) Cover Tab – This will be the first page that viewers will see. Essential information such as the starting date of projection and a legend to the meaning/significance of the colour-coded words and cells are listed here

2) Inputs & Model Tab – This tab serves as a console for the user to plug in raw data/inputs to churn out the key figures in the outputs tab. It also serves as a verification display on key items such as the Internal Rate of Return (IRR) for Lenders and the IRR for preferred partners, where it will check if the figures churned in the output tab satisfies the parameters set by the user in the Inputs & Model tab

3) This tab takes the numbers from the Inputs & Model tab and churns out key figures for performance evaluation like the Internal Rate of Return (IRR) of an investment and the returns of the fund as a multiple of the initial investment sum.

This model was built by Castellum Capital Pte Ltd. We offer corporate finance services to small funds and SMEs that require specialized modelling and reporting solutions as a service.

For more information, please send an email to the founder, Alberto Morente, CFA, at [email protected]. We would be more than delighted to clarify any queries that you may have.

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