Geoff Rehnert and Marc Wolpow have to start Bain Capital left to Audax Group. As part of their separation they were 90-day options granted Bain Capital to acquire stake in a number of portfolio companies at fair value. As they consider whether to exercise its option to buy Bain Capital’s stake in Artisan Entertainment, the company has a highly successful launch of “The Blair Witch Project”. However Rehnert and Wolpow have not increased Audax Group first fund and are … Read more »

Geoff Rehnert and Marc Wolpow have to start Bain Capital left to Audax Group. As part of their separation they were 90-day options granted Bain Capital to acquire stake in a number of portfolio companies at fair value. As they consider whether to exercise its option to buy Bain Capital’s stake in Artisan Entertainment, the company has a highly successful launch of “The Blair Witch Project”. However Rehnert and Wolpow have not increased Audax Group first fund and are not personally able to purchase, which would require about $ 30 million fund. You need to decide whether to go through the purchase, and how to finance it, considering all the problems would raise such an investment for potential investors in their first private equity fund.
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from
Nabil N. El-Hage,
Christopher E.J. Payton
Source: Harvard Business School
12 pages.
Release date: 01 November, 2006. Prod #: 207067-PDF-ENG
Artisan Entertainment Inc. HBR case solution

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