Multiple on Invested Capital (MOIC)

MOIC — Multiple on Invested Capital — answers one blunt question: for every dollar put in, how many dollars came back? A 2.0x MOIC means two dollars returned per dollar invested; a 0.8x MOIC means the investment lost money. The calculation is straightforward: total value (realized plus unrealized) divided by invested capital.

Because MOIC ignores time entirely, it is a complement to IRR rather than a replacement. A 3.0x MOIC achieved over ten years is far less impressive than the same multiple achieved over four years, yet MOIC itself cannot distinguish between the two. Families evaluating private fund opportunities often consider both metrics together precisely for this reason.

MOIC is typically reported on a gross basis — before management fees and carried interest are deducted — which can paint a rosier picture than net returns actually delivered to investors. A hypothetical venture fund might advertise a gross MOIC of 4.0x on a notable portfolio company while the net MOIC, after the fund's economics, lands meaningfully lower. Always clarifying whether a quoted multiple is gross or net is an important discipline when reviewing fund materials. A qualified financial professional can help families interpret these figures in context.