hard · Private Credit & Debt fund-structures-returns-economics

A 5-year LBO model assumes an entry EBITDA of $50 million and a 7.0x entry multiple. The acquisition is financed with $250 million of debt. If EBITDA grows by 5% annually and the exit multiple is 7.5x, calculate the equity MOIC assuming $100 million of debt is paid down during the hold.

1. 4.1x
2. 3.3x
3. 1.8x
4. 2.5x

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