Exit Multiple (MOIC)

Category: finance

A valuation metric representing how many times the initial invested capital a fund recovers upon the sale (exit) of an asset.

Also called "Multiple of Invested Capital" (MOIC). If a firm invests $10M and sells for $30M, the exit multiple is 3.0x. This is distinct from IRR; a 3.0x multiple achieved over two years yields a much higher IRR than a 3.0x multiple achieved over ten years.

Common Examples

• Our target exit multiple for Series-A software investments is 5.0x, allowing us to absorb the occasional total-loss failure of other portfolio startups.
• The secondary market buyer offered an exit multiple of 4.5x, successfully closing our five-year holding period on the retail data platform.