medium · Private Credit & Debt underwriting-credit-analysis
A portfolio company is acquired for 8.0x EBITDA of 80M with 4.0x leverage. At exit in Year 5, EBITDA has grown to102.1M and the exit multiple is 9.0x. If net debt at exit is $220M, calculate the sponsor's IRR (simplified formula).
- 16.9%
- 21.8%
- 19.5%
- 14.2%
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