hard · Private Equity paper-lbo
A PE fund acquires a company for 7.0× LTM EBITDA of $30M, financing 60% with debt.
After 4 years, EBITDA has grown to $40.8M and debt has been paid down from $126M to $33.6M. If the exit multiple is 7.5×, what is the resulting MOIC for the fund?
- 3.24x
- 2.10x
- 4.50x
- 1.67x
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