easy · Private Credit & Debt market-sourcing-sponsor-dynamics
A private equity sponsor acquires a firm for $500M (8.0x EBITDA of $62.5M) using $300M of debt. Five years later, EBITDA has grown to $85M, the exit multiple expanded to 8.5x, and $120M of debt was paid down.
What is the sponsor's Money Multiple (MOIC) on their initial equity investment?
- 2.11x
- 3.61x
- 2.71x
- 1.81x
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