Multiple on invested capital

Measure total value or proceeds relative to invested capital while keeping realised, unrealised, gross and net bases explicit.

Quick answer

Multiple on invested capital, or MOIC, compares investment value or proceeds with the capital invested. A 2.0x MOIC means the measured value equals twice the invested capital. MOIC does not capture how long the capital was invested, so it should be reviewed with a time-sensitive return measure such as IRR.

Use the worked example

Meaning and transaction use

An SEC filing defines unrealised investment MOIC as total investment fair value associated with unrealised investments divided by cumulative invested capital for those investments. [S1]

SEC-filed transaction materials present sponsor MOIC alongside IRR across purchase-price and exit-multiple scenarios. [S2]

Proposed control method: reconcile invested capital and every qualifying distribution or valuation movement to the investment ledger before reporting MOIC.

Worked example

Illustrative investment only. Assume cumulative invested capital of 40.0 million, realised proceeds of 25.0 million and remaining fair value of 55.0 million.

Scroll the table horizontally to view all columns.

Measure	Calculation	Result
Total measured value	25.0 + 55.0	80.0m
Total MOIC	80.0 / 40.0	2.00x
Realised MOIC component	25.0 / 40.0	0.625x
Unrealised MOIC component	55.0 / 40.0	1.375x

The illustrative total MOIC is 2.00x, comprising 0.625x realised and 1.375x unrealised value.

Proposed transaction review process

Define the basis

Set realised, unrealised, gross or net scope and reporting date.

Reconcile invested capital

Tie initial and follow-on contributions to the investment ledger.

Reconcile value

Tie distributions and remaining fair value to evidence and valuation policy.

Report with context

Present MOIC with IRR, holding period, status and valuation uncertainty.

Evidence checklist

Capital

Funding notices, bank records, investment ledger and follow-on contributions.

Realised value

Distribution notices, sale proceeds, dividends and repayment records.

Unrealised value

Valuation model, market inputs, approvals and reporting date.

Adjustments

Fees, expenses, carry, taxes, foreign exchange and ownership changes.

Decision framework

Situation	Proposed action
Value is mostly unrealised	Show the realised component and valuation sensitivity separately.
Follow-on capital is required	Add it to invested capital when funded and update the return case.
Two reports use different bases	Reconcile gross-to-net and realised-to-total definitions.
Holding periods differ	Use IRR and duration alongside MOIC for comparison.

Common errors to check

Reporting fair value as cash proceeds.
Excluding follow-on capital from the denominator.
Comparing gross MOIC with net MOIC.
Using MOIC alone to compare investments with different durations.

Reconcile the investment return bridge

Bring the investment ledger, distribution record and valuation support to a return review. Reconcile realised, unrealised, gross and net MOIC bases.

Discuss the transaction

Primary references and editorial scope

SEC filing: Unrealised investment MOIC definition
Example definition using fair value divided by cumulative invested capital. Reference checked 17 September 2026.
SEC filing: Sponsor MOIC and exit-multiple sensitivity
Example sponsor MOIC presented with IRR across purchase-price and exit-multiple cases. Reference checked 17 September 2026.

Editorial qualification

General transaction education using public United States filings. Figures are hypothetical. Reported MOIC depends on the stated basis, verified cash flows and applicable valuation policy.

General business information. Obtain advice appropriate to the legal, tax, accounting and financing facts. No offer, lender commitment or transaction outcome is represented. All worked examples use expressly assumed figures. Editorial draft date: 17 September 2026.