Scenario-Driven Modeling Supports Complex PE Carve-Out
QuantFi partnered with a PE sponsor on a carve-out from a global financial institution, delivering scenario-driven modeling to optimize structure, quantify risk, and drive investment conviction.
QuantFi's modular build allowed the deal team to toggle leverage, pricing, and amortization scenarios instantly, accelerating debt sizing and negotiation.
Base, Upside, and Downside cases gave stakeholders clarity on risk-adjusted returns and helped frame diligence priorities.
QuantFi’s speed and responsiveness enabled the sponsor to enter exclusivity with confidence and maintain momentum through close.
The problem
A private equity firm was evaluating a carve-out of a non-core business unit from a multinational financial institution. The transaction involved regulatory complexity, limited historical financial visibility, and significant uncertainty around standalone cost structure and capital requirements. The sponsor needed a robust, flexible model to evaluate multiple paths for the business and support fast-paced negotiations with both the seller and debt providers.
What we did
QuantFi built and maintained a dynamic deal model that incorporated:
- Multiple operating scenarios (Base, Upside, Downside) to evaluate sensitivities in topline recovery, margin expansion, and synergies.
- Flexible capital structure modules to toggle between debt sizing options, interest rates, and repayment profiles.
- Return waterfalls modeling gross and net IRR/MOIC across sponsor, management, and co-investor tranches.
- A standalone cost model to isolate stranded overhead and estimate true go-forward economics.
QuantFi worked directly with deal leads, bankers, and operating partners to update the model in real time during exclusivity.
The results
The sponsor was able to confidently underwrite the transaction with a balanced capital structure and a clear view of both downside protection and upside optionality. The model became the central source of truth for IC presentations, lender discussions, and management alignment.