Anyone have experience raising capital for a full cash purchase (no debt)

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September 05, 2024

by a searcher from The University of Chicago - Booth School of Business in Chicago, IL, USA

For religious reasons, we don't deal with interest bearing debt. Was wondering if anyone has raised capital for the full transaction value without debt and if so, what were the returns investors were looking for relative to a deal where you used a debt instrument?

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Reply by a searcher
from INSEAD in San Francisco, CA, USA
Unless you are speaking with investors that have similar sentiments, I'm not sure why it would be any different. You are going to need a plan to get to the +30% IRR number most investors want. Some combo of (a) high growth YOY and (b) a low purchase multiple + multiple expansion upon exit might get you there.
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