medium · Private Equity paper-lbo
Consider an LBO of SteelCo: Entry EBITDA is $100M, Entry Multiple is 8.0x, and Net Debt is $400M. After 5 years, EBITDA has grown to $130M, the exit multiple is 8.0x, and Net Debt has been reduced to $250M.
What is the MoIC for the sponsor?
- 1.30x
- 1.98x
- 2.60x
- 1.75x
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