Equity Multiple
Quick answer
Equity multiple is total distributions to an investor divided by total capital contributed, expressed as a multiple of invested equity.
A 1.8x equity multiple means an investor received $1.80 for every $1.00 invested, including return of capital. Unlike IRR, the equity multiple ignores timing, so the two metrics are read together: a short hold can show a strong IRR with a modest multiple, and a long hold the reverse.
Formula
Equity Multiple = Total Distributions ÷ Total Equity Invested
Related product: JV Equity
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