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MOIC

Multiple on invested capital: total value divided by capital invested, usually measured gross at deal level.

MOIC — Multiple on invested capital: total value divided by capital invested, usually measured gross at deal level.

MOIC is useful for comparing individual deals but can be misleading when comparing whole funds of different ages or vintages, since it says nothing about how long capital was tied up to achieve that multiple — which is exactly the gap IRR is designed to fill.

Frequently asked questions

What is a good MOIC?

It varies enormously by strategy and stage — venture funds often target higher MOICs to compensate for higher loss rates, while lower-risk credit strategies target more modest, more consistent multiples.

Is MOIC gross or net of fees?

It can be presented either way, and the basis should always be stated explicitly — an unlabelled MOIC figure should be treated with real caution.

Nothing on this page is legal, tax, or investment advice. SeRuM is not a registered broker-dealer, not a placement agent, and not an investment adviser.

IRRInternal rate of return: a money-weighted return measure. Sensitive to the timing of cash TVPITotal value to paid-in: DPI plus RVPI. The all-in multiple, read by allocators mainly thro Irr moic calculatorRelated reading.

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