# MOIC — Multiple on Invested Capital

**MOIC** (Multiple on Invested Capital) expresses total return as a simple ratio of total value to capital invested. It is time-insensitive and easy to communicate, making it the most common shorthand for deal-level and fund-level performance.

## Formula

```
MOIC = (Realized proceeds + Current fair value) / Cost basis
```

At the **fund level**, MOIC and [TVPI](/reporting-and-metrics/tvpi.md) are computed the same way — both compare total value (distributions + NAV) against [paid-in capital](/fund-mechanics/paid-in-capital.md). The terms are often used interchangeably in LP reporting.

At the **position level**, MOIC compares the total value of a single investment (exit proceeds plus any remaining fair value) against the cost basis of that investment:

```
Position MOIC = (Exit proceeds + Remaining fair value) / Invested capital in this company
```

## Gross vs Net MOIC

|                | What is excluded                                            |
| -------------- | ----------------------------------------------------------- |
| **Gross MOIC** | Before management fees, fund expenses, and carried interest |
| **Net MOIC**   | After all fees and carry — the LP-level return              |

GPs typically lead with gross MOIC for individual positions (where attribution to fees is ambiguous) and report both gross and net MOIC at the fund level.

## MOIC vs IRR: When to Use Each

| Metric                                   | Strengths                                         | Weaknesses                                        |
| ---------------------------------------- | ------------------------------------------------- | ------------------------------------------------- |
| **MOIC**                                 | Simple, intuitive, no timing assumption           | Ignores time — 3× over 3 years = 3× over 10 years |
| [**IRR**](/reporting-and-metrics/irr.md) | Time-weighted; accounts for when cash flows occur | Sensitive to early distributions; can be gamed    |

MOIC and IRR are complementary: use MOIC for a quick headline figure and IRR to compare against time-weighted benchmarks (e.g., PME vs S\&P 500). A high MOIC with a low IRR means the capital took a long time to compound; a high IRR with a modest MOIC means capital was returned quickly.

## Investment Multiple

[**Investment multiple**](/reporting-and-metrics/investment-multiple.md) is a synonym for MOIC used interchangeably in GP reporting. See that page for position-level usage details.

## How Gildi Computes MOIC

Gildi computes MOIC at both fund level and position level:

* **Fund MOIC** = (Cumulative LP distributions + Current fund NAV) / Total fund paid-in capital. Equivalent to [TVPI](/reporting-and-metrics/tvpi.md).
* **Position MOIC** = (Total exit proceeds from this company + Remaining position [fair value](/reporting-and-metrics/fair-value.md)) / Total cost basis invested in this company.

Both appear in the GP's portfolio dashboard. Position MOIC is displayed gross; fund MOIC is shown in both gross and net form.


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