medium · Private Credit fund-structures-returns-economics
A PE sponsor acquires a company for $500M (10.0x EBITDA of $50M). The deal is funded with $300M of debt and $200M of equity. Five years later, the company is sold for $750M. During the hold, the company used all free cash flow to pay down $100M of debt.
What is the Sponsor's Money Multiple (MOIC)?
- 2.75x
- 2.25x
- 3.75x
- 1.50x
Sign up free to see the explanation and track your rank →
More Private Credit fund-structures-returns-economics practice
- What is the Dividend Coverage ratio?
- If management achieves a 6.0x Money Multiple (MOIC) on their personal investment, while th
- A BDC (Business Development Company) is required to distribu… — What is the primary benefi
- What is the fund's TVPI (Total Value to Paid-In) multiple?
- An investor is reviewing a fund's performance and sees a DPI… — What does this suggest abo
- What is its current Debt-to-Equity (Leverage) ratio?
- If the fund's net TVPI is only 1.15×, what is the most likely explanation?
- A GP is managing a fund with a 'European' (whole-fund) water… — How much carried interest