[Verse 1] When private equity makes a deal They want to know what profits feel Like money in versus money out That's what MOIC is all about Simple math that tells the tale Of whether investments will prevail Take the cash you get back home Divide by what you used to own [Chorus] MOIC shows the multiple Money out divided by money in is the principle Two times means you doubled down Three times wears the winner's crown MOIC shows the multiple Cash returned makes it simple While IRR considers time MOIC just shows the bottom line [Verse 2] IRR will factor in the years How long until your cash appears But MOIC doesn't care for when Just focuses on where and when If you put in a million dollars And got back three, then holler MOIC equals three point oh That's all you really need to know [Chorus] MOIC shows the multiple Money out divided by money in is the principle Two times means you doubled down Three times wears the winner's crown MOIC shows the multiple Cash returned makes it simple While IRR considers time MOIC just shows the bottom line [Bridge] Both metrics tell a different story IRR shows timing glory MOIC shows the total gain PE managers need both to explain Success in their investment game Time and money aren't the same [Verse 3] Why do we need both measures here To make performance crystal clear IRR shows how fast you grow MOIC shows how much you'll know Your total return from start to end On both these metrics you depend [Final Chorus] MOIC shows the multiple Money out divided by money in is the principle Two times means you doubled down Three times wears the winner's crown Use them both for clarity Time and total returns you see MOIC and IRR combined Give you PE peace of mind [Outro] Multiple on invested capital Makes PE performance practical Simple math that shows the way Your investments really pay
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