What is moic in private equity?

MOIC, or Multiple on Invested Capital, is a key performance metric used in the private equity industry to measure the return on an investment. It is calculated by dividing the final value of an investment by the initial investment amount.

A high MOIC indicates a successful investment that has generated a good return for the investor. It is often used by private equity firms to assess the performance of their investments and make decisions about future investment opportunities.

MOIC is particularly important in private equity because of the longer investment horizon and illiquid nature of private equity investments. It helps investors understand the profitability of their investments and make informed decisions about their portfolio.

Overall, MOIC is a critical metric in private equity that provides insights into the performance of investments and helps investors evaluate the success of their investment strategy.