[Verse 1] Private equity deals demand their scorecard truth Two metrics reign supreme to measure proof MOIC counts the cash that flows back home Multiple on invested capital, carved in stone Take your total returns, divide by what you paid Simple multiplication shows the gains you've made [Chorus] Money Out, Money In - that's the MOIC way Multiple times your dollars, what the returns relay IRR shows the speed, but MOIC shows the size Two lenses on performance, both essential to be wise Cash on cash returns, the multiple you earn MOIC paints the picture every investor needs to learn [Verse 2] Fund commits ten million to acquire the prize Five years later exits at twenty-five Twenty-five divided by ten equals two-point-five MOIC of two-five-x means wealth multiplied No time consideration, just the raw amount Pure cash multiplication is what MOIC counts [Chorus] Money Out, Money In - that's the MOIC way Multiple times your dollars, what the returns relay IRR shows the speed, but MOIC shows the size Two lenses on performance, both essential to be wise Cash on cash returns, the multiple you earn MOIC paints the picture every investor needs to learn [Bridge] IRR captures timing with its percentage rate Compound annual growth that time can calculate But MOIC ignores the clock, focuses on scale Both metrics together tell the complete tale Quick wins versus patient wealth creation Different stories from the same investment equation [Verse 3] Three-x MOIC in two years screams success But so does two-x earned across a decade's test IRR reveals which path generated more Annual returns that time cannot ignore Portfolio managers need both tools in hand To judge performance across investment land [Chorus] Money Out, Money In - that's the MOIC way Multiple times your dollars, what the returns relay IRR shows the speed, but MOIC shows the size Two lenses on performance, both essential to be wise Cash on cash returns, the multiple you earn MOIC paints the picture every investor needs to learn [Outro] When evaluating funds, remember this refrain MOIC and IRR together break the chain Of single-metric thinking, incomplete and flawed Both measures combined reveal investment's broad Canvas of performance, painted rich and true Multiple on invested capital guides you through
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