Problem
Blackstone completed the leveraged buyout acquisition of Regal paying an EV/EBITDA multiple equal to 7.0x and a total equity contribution of $200.
Blackstone expects to sell Regal in 5 years with a 7.5x EBITDA exit multiple, with expected EBITDA of $120 and net debt (i.e., debt - cash) of $550 in year 5.
What is the expected IRR of this deal?