easy · Private Equity & LBOs
A sponsor acquires a business for $600M using $400M of debt and $200M of equity. At exit, the company is sold for $800M enterprise value, and the debt has been paid down to $300M.
What is the sponsor's MOIC?
- 1.67x
- 4.0x
- 2.5x
- 1.33x
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