MoIC divides total value — NAV plus realised distributions — by invested cost. It is the performance multiple Jolv uses as its reference; NAV / cost is RVPI. The definition is uncontroversial: differences between two tables almost always stem from the treatment of pending cash flows, write-downs and changes in cost.
Calculation convention
MoIC = (NAV + realised distributions) / invested cost
Jolv conventions, two of which depart from market guidance: escrow or an earn-out enters the numerator only once collected (Invest Europe recommends including its estimated fair value); capitalised PIK interest increases the cost used as denominator (ILPA excludes it from invested capital). A fully written-down investment carries no NAV; a debt repayment leaves cost unchanged.
Worked example (fictional)
Invested cost €10m, distributions collected €6m, residual NAV €8m, €2m of deferred consideration held in escrow.
| Numerator used | 8 + 6 = €14m |
|---|---|
| Invested cost | €10m |
| MoIC | 1.40× |
| Escrow counted in advance | 1.60× |
The 0.20× difference corresponds to an amount the fund has not collected and may never collect. Presenting 1.60× in committee amounts to anticipating the release of the escrow without saying so.
Review points
- Escrow or earn-out counted at face value before collection, without the convention used being stated.
- Fully written-down investment kept at 1.00× to avoid dragging down the aggregate, although its NAV is zero: its MoIC reduces to distributions already received, i.e. 0.00× if there were none.
- PIK interest carried in NAV at face value, without a recoverability test.
In Jolv
Jolv calculates MoIC from campaign NAV and realised distributions, divided by invested cost; each component can be traced back to the ticket and the campaign. Exited holdings remain in IRR with their realised cash flows.
Feature — Portfolio valuation software
Further reading — MoIC or RVPI: two confused multiples, only one measures performance