The Project Falcon investment is expected to generate a MOIC of 2.41 and an IRR of 19.23% over a 5-year hold period, assuming an exit multiple of 8x and net debt at exit of $35.75M. The returns are driven by a combination of EBITDA growth and multiple expansion. The sensitivity grid highlights the impact of varying exit multiples and hold periods on the investment's IRR.
The analysis assumes net debt held flat from entry to exit, unless otherwise specified, and single entry/exit cash flows.
| Exit Multiple | 4-year IRR | 5-year IRR | 6-year IRR |
|---|---|---|---|
| 6 | 9.73% | 7.71% | 6.39% |
| 7 | 17.87% | 14.05% | 11.58% |
| 8 | 24.60% | 19.23% | 15.79% |
| 9 | 30.38% | 23.65% | 19.35% |
| 10 | 35.49% | 27.50% | 22.44% |