What is MOIC?
Multiple on Invested Capital: total value, meaning cash returned plus what is still held, divided by the amount invested. It counts paper value as well as cash, so part of a high figure may never be paid out.
($5M cash + $15M held) ÷ $10M = 2.0x
In real work
Yusuf's $20,000 stake in the payroll startup is now marked at $60,000, a MOIC of 3, though no cash has come back to him yet.
In the illustration
$10M went into the company drawers. The LP cash tray holds $5M already returned, and the value tags on the drawers still held add up to $15M on paper. Both linkages pull on the multiple dial, which swings to 2.0x.
In your deal notebook, calculate MOIC for each of the eight investments below from amount invested, cash returned and current value. Show the arithmetic and mark which part of each figure is still on paper.
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