hard · Corporate Credit Analysis credit-metrics
A private equity sponsor acquires 'Omega Co' for 8.0x LTM EBITDA of $100 million. The deal is funded with $500 million of debt and $300 million of equity. After 5 years, the sponsor exits at 8.0x EBITDA, which has grown to $150 million. Total debt has been reduced to $350 million.
What is the sponsor's Multiple on Invested Capital (MOIC)?
- 2.33x
- 2.83x
- 4.00x
- 1.50x
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