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?
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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.
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