Definition
The total value returned to investors divided by the total amount invested, ignoring time. It's the simple, honest metric that tells you whether you made or lost money, period.
Example Usage
We achieved a 4.2x MOIC on our early-stage fund, turning $50 million into $210 million over nine years.
Origin
Basic financial metric, commonly abbreviated as MOIC or TVPI (Total Value to Paid-In), standard in private equity since the 1980s.
Fun Fact
While IRR is sexier and accounts for timing, many LPs prefer MOIC because it's harder to manipulate and easier to understand—you either made a multiple of your money or you didn't.
Source: Private equity and venture capital performance measurement standards
Related Terms
Translate This Term
See “multiple on invested capital” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
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