Average MOIC for LMM Investment
What is everyone seeing as far as an average MOIC for a lower middle market buyout deal with a hold period of roughly 4 - 6 years?
Trending Content - Private Equity Forum
| +89 | Nothing to do at work & bored to hell | 9 | 1d |
| +67 | Do people over-index on 'moats' | 22 | 1d |
| +53 | Predicted Net Worth in Trodden Finance Path by 60? | 20 | 1d |
| +44 | Biggest (avoidable) failures in PE Investments? | 25 | 1d |
| +38 | Why is ROIC never really a topic when looking at companies IRL | 11 | 5d |
| +24 | What do you think of PE Value Creation Careers in 2026? | 7 | 17h |
| +18 | LT Career Path after MF PE Associate Program? | 5 | 2h |
| +15 | Honest opinions needed about lateraling | 5 | 15h |
| +12 | NY LMM PE Recruiting | 3 | 2d |
| +12 | How to approach Buyside Recruiting | 3 | 6d |
Career Resources
idk about actual realized returns but in my mind a LMM LBO should be underwritten to a 25%+ IRR / 3x MOIC over that time horizon given operational lift and risk level.
Probably 3.0x and 25% IRR
Agree with others. Many LP's will want higher returns to compensate for added risk due to smaller businesses. MF's can target 2x but LMM is usually 2.5-3.5x depending on size.
Fugiat ut ea omnis dignissimos inventore libero earum. Similique et veritatis occaecati vitae in repellendus. Eos veritatis fugiat enim omnis voluptatem labore laudantium. Voluptatem voluptas et rem beatae odit omnis. Quasi dolor eligendi repellat temporibus. Nemo sit voluptatem sed eos repellat non nihil. Nostrum itaque est neque hic exercitationem voluptatem illo.
Ut consequatur in voluptas. Sint qui in aut ipsum delectus quo. Laborum omnis nobis tempora est. Asperiores at esse dolorum deleniti laborum aut.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...