Cash-on-Cash Multiple
Private Equity glossary · Advanced LBO Modeling Mechanics & Deal Structuring
Definition
On a deal basis, total proceeds (realized distributions plus current unrealized value) divided by invested equity, ignoring time: CoC = MoIC = (Distributions + Residual NAV)/(Paid-In Capital). In real-estate and infrastructure parlance, 'cash-on-cash' is sometimes used more narrowly to mean realized cash returned divided by equity invested (equivalent to DPI), excluding unrealized NAV — context matters. A 2.0x MoIC means the investor has received back 2× what was contributed.
Cash-on-Cash Multiple in plain English
The cash-on-cash multiple (also called MoIC) is the simplest scoreboard in investing: how many times your money you got back, ignoring how long it took. You add up all the cash returned plus whatever the investment is still worth today, then divide by what you originally put in — so a 2.0x means you turned $1 into $2. It's like saying 'I doubled my money' without worrying whether it took two years or ten. Just watch the context: in real estate the same phrase sometimes means only the actual cash received back (not paper value still tied up), so it's worth checking which version someone means before comparing deals.
Learn these first
Related Private Equity terms
Private Equity practice questions · Private Equity flashcards · Private Equity study guide