A metric that describes the value or performance of an investment relative to its initial cost. This is often used as an interim indicator of fund performance. This is distinct from TVPI (Total Value to Paid In) in that fund fees and costs are not subtracted from the metric, so presents a better view of investment performance.
0
Answered by
Community Member
on
Should the denominator for MOIC be the initial committed capital, or the total invested capital (i.e. minus fees)? Say, for a $20M fund of which $3M goes to fees over 10 years, is MOIC calculated as return/20M, or return/17M ?
Thank you.
Join VC Lab
Raising your first fund? VC Lab has helped launch 950+ venture firms, with no fees and no equity taken. The average Start Fund reaches first close in 58 days.