A 5-year leveraged buyout: entry sizing, a 100%-cash-sweep debt paydown schedule, and sponsor returns decomposed into EBITDA growth, multiple expansion, and deleveraging.
Deleveraging & EBITDA growth
Leverage falls from 3.6x to 0.5x Debt/EBITDA over the hold as free cash flow sweeps entirely to debt paydown.
Sources of sponsor return
$251mm sponsor equity in, $1,122mm exit equity out — a 4.46x MOIC / 34.9% IRR, broken into what actually drove it.