Brazos Partners Fund I, which closed in January 2001 with $200 million in committed capital, made its first investment to acquire CoMark in January 2002 for an enterprise value of $40 million with a $15 million equity investment. They exited CoMark in December 2005 by selling the firm to Carlyle Venture Partners for an $100 million enterprise value. Comark had $10 million of debt remaining at the time of the sale.

[A] Calculate the IRR and MOIC for the CoMark deal for Brazos Partners Fund I.

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[B] Assuming this was Fund Is only investment, estimate how much revenue the fund generated from January 2001 to December 2005. Explain your calculations

[C] Estimate the largest size firm the $200 million fund could acquire. Explain your calculation.

[D] The CoMark capital structure in the case assignment used about 65% debt at closing. Based on the deal evaluation metrics that PE firms report using in the study described in the case study, why exactly would a PE firm prefer using more or less leverage?