INVESTMENT ANALYSIS GUIDE
How to Calculate MOIC
MOIC compares realized distributions plus remaining value with total invested capital.
In this guideWhat the analysis measuresCalculation frameworkUnderwriting reviewHow to use the result
What the analysis measures
Add cash distributions and fair value of the remaining position, then divide by all invested capital. Prevent distributions from remaining inside NAV.
Calculation framework
Distinguish gross and net MOIC and realized and unrealized components. Fees and carry can materially change the investor result.
Underwriting review
MOIC ignores timing, so a 2.0x result can represent very different annual performance depending on the hold period.
How to use the result
Use MOIC with IRR, duration and downside value. Review the valuation basis for unrealized positions before treating the result as cash returned.