Hey everyone,
I was wondering what you think are the Target IRRs for LBOs these days.
I was reading about 20%+ some years ago, but a) with risk-free rates so low and b) with so much dry powder out there in the hands of GPs, I would imagine that the target IRRs have decreased maybe to 12-15%. I am referring to LBOs of relatively mature and stable companies.
What do you think?
Any input is welcome.
Thanks
George