hard · Private Equity paper-lbo
A private equity firm acquires a target with LTM EBITDA of $50M at an 8.0x entry multiple. The transaction is funded with 5.0x leverage. Five years later, the company is sold at an EBITDA of $75M and a 9.0x multiple.
If $60M of debt was paid down during the hold, what is the realized MoIC for the sponsor?
- 4.10x
- 3.43x
- 3.23x
- 2.83x
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