MOIC, the multiple on invested capital, is total cash returned divided by cash invested. It states how much came back per dollar put in, with no reference to how long the money was out.
A multiple is simple and time-blind. A position that returns a stated multiple in two years and the same multiple in six years looks identical on MOIC, though the annualized returns differ sharply. For that reason MOIC is always read beside the duration of the position.
In legal assets the multiple is often set by contract and the realized result depends on proceeds, priority and collection. Dollar outputs are labeled distributions, and MOIC is computed from a distribution and stated terms, not predicted directly.
MOIC is not a measure of skill or of risk. It is an outcome ratio, and it needs a denominator of time before it can be compared across positions.
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