Multiple on Invested Capital (MOIC)

Multiple on Invested Capital (MOIC) is a performance metric used to evaluate the total return on an investment relative to the amount of capital initially invested. It is calculated by dividing the total value of an investment, including both realized returns and the current value of any remaining holdings, by the original invested capital.

In the context of family office software, MOIC is often used to assess the performance of private funds or alternative investments. It provides a straightforward way to measure the overall growth of an investment portfolio, regardless of the time frame. Unlike metrics that account for time value, such as Internal Rate of Return (IRR), MOIC focuses solely on the absolute return.

This metric is particularly useful for family offices tracking long-term investments, as it offers a clear snapshot of how much value has been created compared to the initial investment amount.