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Leveraged Breakdowns

Introduction to the LBO4 Model

Ninety percent of candidates I interview do not understand the fundamental mechanics of the equity waterfall. Mastering the equity waterfall will set yourself apart from the competition with a nuanced understanding of the time value of money, private equity fund structure, and the revenue model of private equity GPs. This video conceptually introduces the equity waterfall before we build it from scratch together in Excel.

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