easy · Private Equity paper-lbo

At exit, a portfolio company has 120 million of enterprise value, 35 million of debt, and 5 million of cash. The sponsor originally invested 45 million. Assume no other equity adjustments.

What is the sponsor's exit MOIC?

  1. 1.0x
  2. 1.8x
  3. 2.0x
  4. 2.7x

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