Impact Investing
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Impact IC Cases: Invest / Don't Invest
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Investment CaseQuestion 1 of 5
Read the scenario below and answer the questions
Company Overview
SunGrid Africa provides pay-as-you-go solar home systems for off-grid households.
- •LTM Revenue: $60M
- •LTM EBITDA: $12M (20% margin)
- •Households Served Today: 500,000
- •Target Households in Year 4: 800,000
- •Estimated Additionality: 70% (portion of outcomes that would not happen without this capital and scale plan)
Investment Thesis (Impact)
- •Replaces kerosene and diesel lighting with solar
- •Improves household safety and lowers energy costs
- •Supports SDG-aligned outcomes (energy access and emissions reduction)
Transaction Assumptions
- •Entry EV: 10.0x EBITDA
- •Debt: 4.0x EBITDA at close, interest 9%
- •Mandatory amortization: $5M per year
- •Hold Period: 4 years
- •Year 4 EBITDA: $20M
- •Exit Multiple: 9.0x EBITDA
What You Need To Do
Answer the following questions (valuation, returns, impact KPIs, impact risks, and final IC recommendation).
Numeric AnswereasyValuation
Based on the case, what is the equity check at close (in $M)?
Enter in millions (e.g., 65 for $65M)
Submit your answer to continue