MOIC stands for "Multiple on Invested Capital" and is a metric used to describe the value or performance of an investment relative to its initial cost, commonly used within private markets such as private equity. MOIC is a ratio of money received (or will receive) relative to the investment amount, and it measures the value generated by an investment relative to the initial investment. MOIC is expressed as a measure of the total value (i.e., both realized and unrealized) of all shares in the fund divided by the initial investment. MOIC is a quick and easy measure that does not involve time-weighted returns and therefore does not consider the timing of capital calls or distributions, nor does it consider the portfolios net asset value at any point other than at the specified time. MOIC is particularly prevalent in the private equity industry, where it is used to track a funds investment performance and compare returns across different firms. MOIC is an important performance metric, often calculated at the deal or portfolio level to estimate the returns, both realized or unrealized, of the investments.