Private Equity
MOIC: The Private Equity Performance Metric That Tells You Magnitude Without Time
TL;DR: MOIC (Multiple on Invested Capital) measures how many times a fund returned your original investment. Formula: MOIC = Total Value (Realized + Unrealized) / Total Invested Capital. It tells you
Jeff Barnes, MBA··5 min read
Private Equity
MOIC Explained: Multiple on Invested Capital and Why the Number You See Is Probably Inflated
MOIC Explained: Multiple on Invested Capital and Why the Number You See Is Probably Inflated TL;DR: The gross MOIC a GP quotes in a pitch deck is not the net MOIC you receive as an LP. Standard…
Jeff Barnes, MBA··11 min read
Venture Capital
TVPI Tells You What a Fund Is Worth. It Doesn't Tell You What You'll Get Paid.
A 2019-vintage fund that was showing 3.2x TVPI in early 2022 looked brilliant. By mid-2023, that same fund was sitting at 1.4x. Not a single company had been sold. The GP hadn't made a bad decision in those 18 months....
Jeff Barnes, MBA··10 min read