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Course Description

The components of capital stack are organized in order of priority of payment, risk, and expected returns. Among equity partners, it’s important to examine the cash flow “waterfall” of the equity cash flow distribution structure. In addition, duration plays a major role in valuations of internal rate of return (IRR) and the financial management rate of return (FMRR). In this lesson, you will explore how a private equity sponsor can structure cash flow distribution to enhance the sponsor's returns. You will determine how to account for the timing of cash flow to develop a more accurate calculation of the internal rate of return (IRR).

Benefits to the Learner

  • Review the characteristics of the components of capital stack in order of priority of payment and returns
  • Assess the “waterfall” structure of equity cash flow distribution
  • Examine the internal rate of return (IRR) and the financial management rate of return (FMRR) for reinvestment, as well as the role of duration
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Type
self-paced (non-instructor led)
Dates
Oct 28, 2020 to Dec 31, 2030
Total Number of Hours
1.0
Course Fee(s)
Regular Price $0.00
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