medium · Private Equity
Consider an LBO of IndustrialCo where the sponsor, Titan Equity, achieves a 2.0x Multiple of Invested Capital (MoIC) over a 5-year holding period.
Using standard PE conversion rules, which of the following is the most accurate approximation of the money-weighted Internal Rate of Return (IRR)?
- 25.9%
- 14.9%
- 10.4%
- 20.0%
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