MOIC (Multiple on Invested Capital)
Principles of Finance glossary · Capital Budgeting
Definition
Private-equity return metric: exit equity proceeds divided by sponsor equity invested. A 2.67x MOIC means the sponsor returned 2.67 dollars for every dollar invested. Reported alongside IRR because MOIC captures absolute multiple while IRR captures time-weighted return.
MOIC (Multiple on Invested Capital) in plain English
MOIC is just a plain 'how many times did I multiply my money?' scorecard used by firms that buy companies. If a firm puts in $100 million and later sells for $267 million, that's a 2.67x MOIC, meaning every dollar came back as $2.67. It's reported next to IRR (which cares about SPEED of return) because MOIC alone ignores time: tripling your money in 2 years is far better than tripling it in 20, so you want to see both numbers together.
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