Private Placement & Strategic Stake Model

Model private equity transactions, Chaffe/Finnerty illiquidity lock-up discounts (DLOM), and unbundle commercial partnership value from headline equity prices.

Preset Deals:

Unbundled Deal Economics & Sensitivity

Real-time calculation of illiquidity discount, net equity basis, and commercial return.

Effective Share Price (Net) $44.08 45.5% below benchmark
Model Illiquidity Discount (DLOM) 24.8% Fair lock-up value: $71.44
Commercial Agreement NPV $45.49M Covers 45.5% of total capital
Capital Allocation Breakdown ($100.0M Total Investment) Net Equity Basis: $54.51M
Net Equity Basis: $54.51M
Commercial Agreement NPV: $45.49M
Placement Discount vs Unrestricted: -$14.16 / share (-14.9%)

Lock-up Expiration & Return Sensitivity

Exit Scenario Exit Share Price Gross Stake Value Net Profit / (Loss) 2-Yr Lock-up MOIC 2-Yr Annualized IRR
Model synced: Finnerty put-option DLOM verified against 2-yr lock-up parameters.

1. The Lack of Marketability Discount

Private placements with strict 2-year lock-ups restrict resale. Under the Finnerty (2012) average-strike put option model, illiquidity cost scales directly with time-to-unlock and equity volatility.

DLOM ≈ V₀ · [2·N(v/2) - 1], v = σ√(T)

2. Unbundling Strategic Partnerships

When strategic buyers commit capital bundled with multi-year promotion or liquidity deals, the true purchase price of the shares is offset by the discounted net present value of commercial synergy.

Net Price = (Capital - NPV_commercial) / Shares

3. Realized Deal Return (MOIC & IRR)

Returns can be measured against headline investment ($100M) or the unbundled net equity basis. The sensitivity matrix illustrates return multiples across downside, base, and bull exit targets.

IRR = (Exit Stake / Basis)^(1 / Years) - 1
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