Multiple on Invested Capital (MOIC)

November 18, 20221 min read
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Multiple on Invested Capital (MOIC) is a performance metric commonly used with private market investments. It measures the value of your investment at maturity relative to the amount you initially invested. Simply put, MOIC is how many times you get your capital back on an investment. 

One of the key advantages of MOIC as a performance metric is its simplicity and versatility. MOIC can be applied to a wide range of investment types, like private equity, venture capital, and real estate. Furthermore, it is not dependent on the holding period, which makes it an effective comparative tool for assessing investments with different time horizons.

For example, consider an offering with a MOIC of 1.8X. Should you invest $100K in this offering, you can expect to receive $180K at maturity.