b_sea93

I think that the Private equity firm is not the only investor in the portfolio company.

If they invest 10 mio, the value of their investment at that moment (part of POST) is 10 mio. and they own 2/3 of 1 mio shares owned by investors. And there must be some other investors who own the rest, 1/3 of 1 mio shares. Plus management owns 0.3 mio shares, share price 15.