Sorry I wasn't clear with my pronouns (?) - "they" referred to the LPs, not Insight. Meaning that now the LPs (not Insight) have to figure out how to reinvest the capital that was returned.
That's only true if the investment was participating preferred equity (sometimes known as "double-dipping"); if it was convertible preferred equity then it's an either/or scenario (they choose between getting their…
It's definitely not a total win - first, the return isn't actually ~50% given the $365M in installment payments and assumed unvested equity; second, your LPs committed capital to your fund expecting a certain IRR over…
Sorry I wasn't clear with my pronouns (?) - "they" referred to the LPs, not Insight. Meaning that now the LPs (not Insight) have to figure out how to reinvest the capital that was returned.
That's only true if the investment was participating preferred equity (sometimes known as "double-dipping"); if it was convertible preferred equity then it's an either/or scenario (they choose between getting their…
It's definitely not a total win - first, the return isn't actually ~50% given the $365M in installment payments and assumed unvested equity; second, your LPs committed capital to your fund expecting a certain IRR over…