Exit multiple (MOIC) measures total return on a private investment by dividing exit value by amount invested. IRR measures the annualised return accounting for the holding period.
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Pro Tip
MOIC without knowing the time period is misleading. Always calculate IRR to compare investments with different holding periods.
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Did You Know?
Top-quartile VC funds target 3x MOIC. The best funds have historically returned 5-20x on their best vintages.
References
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