easy · Private Credit & Debt 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
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