medium · Private Credit fund-structures-returns-economics
In an LBO, the 'Envy Ratio' is used to analyze the relative attractiveness of management's economics.
If management achieves a 6.0x Money Multiple (MOIC) on their personal investment, while the PE Sponsor achieves a 2.67x MOIC, what is the Envy Ratio?
- 1.50x
- 2.25x
- 0.45x
- 3.33x
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