This is a hypothetical private equity investment case in a public company. The terms are privately negotiated between your firm and IBM.

IBM is expanding into a service to monitor AI$.$ IBM is planning on raising $$20$ billion for this purpose. Your company $($a private equity fund$)$ has discussed internally and decided to invest in IBM. You firm will invest $$7$ billion from the PE fund and will have to use debt for the remaining balance.

As a senior executive from you company, you come to IBM to present your investment and your plan. Assume your firm$$s initial investment horizon is $57$ years, then exit. Thus, you will cover:

The equity percentage of your firm$$s investment at IBM.

How are you going to raise debt?

How to de$-$leverage after the investment?

How will your firm add value other than the $$20$ billion?

What is your estimated valuation at time of exit. Profits or losses to your firm?