PE Sponsor Underwrites a Carve-Out in a 2-Week Turnaround

QuantFi built a dynamic deal model that let a PE sponsor flex 15+ capital structures and three operating scenarios in real time, moving from LOI to a fully diligenced model in two weeks.

2-week turnaround

LOI to a diligenced model

< 4 weeks

Implementation Time

Christian Sanford

Managing Partner

QuantFi

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The Challenge

A PE sponsor needed to underwrite a complex carve-out from a global financial institution on a compressed timeline, evaluating many capital-structure options and operating scenarios while maintaining the accuracy required for investment-committee approval and lender negotiations.

What They Built

QuantFi built a dynamic deal model with Base, Upside, and Downside operating scenarios; flexible capital-structure modules to toggle debt sizing, rates, and repayment profiles; return waterfalls modeling gross and net IRR/MOIC across sponsor, management, and co-investor tranches; and a standalone cost model isolating stranded overhead and go-forward economics.

The model let the deal team flex capital structures and scenarios in real time, isolate stranded costs, and move from LOI to a fully diligenced model in two weeks.

AI Role

Infrastructure

Integration Points

Impact

2-Week Turnaround

From LOI to a fully diligenced model in two weeks.

15+ Capital Structures

Capital-structure variations evaluated in real time.

3 Operating Scenarios

Base, Upside, and Downside cases fully modeled.

Technology Utilized

Implementation Complexity

Time Savings

Risk & Compliance

Best Fit For

PE sponsors underwriting carve-outs or complex deals who need a flexible, IC-ready model turned around fast.

Christian Sanford

Managing Partner

QuantFi

Co-founder of QuantFi, building agentic AI and financial-modeling tools for finance teams, PE sponsors, and founders.

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Industry:

Financial Services

Business Function:

Finance & Accounting

Executive & Strategy

Company Size:

Project Cost:

Cost not disclosed

Ownership:

Private Equity-Backed

Organization Type:

Private Equity Firm

AI Pattern:

Data Synthesis & Reporting

Value Type:

Time Savings

Risk & Compliance

AI Model:

Frequently Asked Questions

How did a PE sponsor underwrite a carve-out in a two-week turnaround?

The sponsor used a dynamic deal model that flexed 15+ capital-structure variations and three operating scenarios in real time, with return waterfalls across tranches and a standalone stranded-cost model, moving from LOI to a fully diligenced model in two weeks.

What financial modeling approach was used?

The experts built Base, Upside, and Downside operating scenarios, flexible capital-structure modules to toggle debt sizing, rates, and repayment profiles, return waterfalls modeling gross and net IRR/MOIC, and a standalone cost model isolating stranded overhead.

What results did the sponsor achieve?

A two-week turnaround from LOI to a fully diligenced model, 15+ capital-structure variations evaluated in real time, and three fully modeled operating scenarios.

How long did the modeling take?

Two weeks from LOI to a fully diligenced model - in the under-4-weeks range.

Who is this carve-out modeling approach best for?

PE sponsors underwriting carve-outs or complex deals who need a flexible, IC-ready model turned around fast.

Originally published by

QuantFi