medium · Private Credit & Debt fund-structures-returns-economics
Westbound Capital funds $40,000,000 in a unitranche loan for Titan Steel. The loan pays 11% cash interest annually. The fund pays a 1% annual management fee on the gross asset value.
If held for 2 years and repaid at par, what is the fund's net MOIC (ignoring other expenses)?
- 1.22x
- 1.20x
- 1.18x
- 1.10x
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