MOIC
Also known as Multiple on Invested Capital, Multiple, Gross Multiple
MOIC (multiple on invested capital) is the total value returned by an investment, realized plus unrealized, divided by the capital invested. It is the simplest measure of investment performance and ignores time.
Formula
MOIC = (Realized Value + Unrealized Value) / Invested Capital- Realized Value
- Cash and securities distributed back to the investor
- Unrealized Value
- Current fair-market value of the remaining position (NAV)
- Invested Capital
- Total capital contributed into the investment
In depth
A 3x MOIC means $1 invested became $3 of value, regardless of whether that took two years or twelve. MOIC is paired with IRR or DPI to capture timing and realization. Gross MOIC excludes management fees and carried interest; net MOIC reflects what LPs actually receive after fees and carry.
Why it matters
MOIC is the common language of investor performance. It is intuitive, unambiguous, and survives across asset classes. Its weakness is ignoring time, which is why it pairs with IRR. A 3x MOIC over three years is exceptional; the same 3x MOIC over fifteen years is mediocre.
Worked example
A $500K seed check that becomes worth $4M after a Series C markup has a MOIC of $4M / $500K = 8.0x.
If $1M of that was distributed to LPs via a secondary sale:
| Metric | Calculation | Value |
|---|---|---|
| DPI | $1M / $500K | 2.0x |
| RVPI | $3M / $500K | 6.0x |
| TVPI | DPI + RVPI | 8.0x |
Frequently asked
What is the difference between gross and net MOIC?
Gross MOIC is calculated before management fees and carried interest. Net MOIC subtracts both, reflecting what limited partners actually receive. The spread is typically 0.3-0.6x depending on fund terms.
Is a 2x MOIC a good return?
It depends on time and asset class. For venture, top-quartile funds target 3x+ net MOIC over 10 years. A 2x MOIC over five years implies ~15% IRR, which is strong; the same 2x over twelve years is below most LP hurdles.
Can MOIC decrease?
Yes. Markdowns of unrealized positions reduce MOIC. A 4x MOIC at peak can compress to 1.5x if portfolio companies are remarked down in a correction. Realized MOIC, by contrast, only grows.