medium · Investment Banking ma-lbo
A private equity firm acquires a company for $500M, using $350M of debt and $150M of sponsor equity. Five years later, the firm sells the company for $800M. At the time of exit, the company has $200M of debt remaining.
What is the Multiple on Invested Capital (MOIC)?
- 1.60x
- 4.00x
- 5.33x
- 2.00x
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