medium · Private Equity paper-lbo
An LBO model shows a Year 5 exit where Enterprise Value is $1,200M and ending Net Debt is $400M. The initial sponsor equity was $200M.
What is the IRR over the 5-year hold, assuming a single entry and exit cash flow?
- 24.6%
- 32.0%
- 14.9%
- 40.0%
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