Performance
Multiple on Invested Capital (MOIC)
Total value (realized plus unrealized) divided by capital invested, expressed as a multiple.
MOIC measures how many times an LP's capital has been multiplied. It is the cleanest answer to the question 'how much money did this fund actually make?' because it is insensitive to timing and to financing tricks.
A 2.5x MOIC means $1 of invested capital produced $2.50 of total value. MOIC ignores time value of money, which is why it is always reported alongside IRR.
Most institutional benchmarks consider net MOIC of 1.7x to 2.0x to be a strong outcome for a buyout fund of recent vintage.