medium · Private Equity & LBOs
A sponsor buys a company for $1,000M (10.0x EBITDA) using $600M of debt. After 5 years, the company is sold for $1,500M (also 10.0x EBITDA).
If the debt has been paid down to $400M, what is the sponsor's MOIC?
- 2.50x
- 1.50x
- 2.75x
- 3.75x
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