MOIC stands for multiple on invested capital. It compares the cash an investor receives with the cash the investor originally contributed.
The formula is straightforward: MOIC = total proceeds divided by invested capital. If a sponsor invests $100 million and later receives $250 million, the investment produces a 2.5x MOIC. A 1.0x MOIC means the investor merely recovers the original investment, while anything below 1.0x represents a loss.