MOIC
Business & Finance abbreviation · Finance
| Stands for | Multiple on invested capital |
|---|---|
| Categories | Business & Finance |
MOIC stands for Multiple on invested capital, a finance abbreviation.
Ratio of the total value an investment has returned or is worth to the capital invested in it, expressed as a multiple such as 2.5x. Private equity and venture investors use it alongside IRR to measure absolute return.
Example: We bought the business for $200 million in equity and sold it for $600 million, a 3.0x MOIC.
Usage notes
Pronounced "moyk." Unlike IRR, MOIC ignores timing: 2x in three years and 2x in ten years look identical. Gross MOIC is measured before fees and carried interest, so net figures are lower. At the fund level, LPs track the related measures TVPI and DPI.
Related abbreviations
More finance abbreviations
- LP – Limited partner
- LTM – Last twelve months
- M&A – Mergers and acquisitions
- MAC – Material adverse change
- MBO – Management buyout
- MIRR – Modified internal rate of return
- MRR – Monthly recurring revenue
- NewCo – New company
- NOPAT – Net operating profit after tax
- NPV – Net present value
- NTM – Next twelve months
- NWC – Net working capital