If you're new here, you may want to subscribe to my newsletter, Family Finance Mom Weekly for updates and FREE resources! You can also find me hanging out daily on Facebook and my personal favorite, Instagram.
Please note, as an Amazon Associate and affiliate for other brands, I earn from qualifying purchases. This post may contain affiliate links or product reviews for which I may receive compensation. For more details, please see our Terms & Conditions and Privacy Policy pages. Thanks for visiting!
Welcome Back! Come hang out with me every day on Facebook and Instagram.
Please note, as an Amazon Associate and affiliate for other brands, I earn from qualifying purchases. This post may contain affiliate links or product reviews for which I may receive compensation. For more details, please see our Terms & Conditions and Privacy Policy pages. Thanks for visiting!
Definition:
A measure of return on investment, calculated relative to your original investment. It is calculated as the total current value of your investment divided by the original investment value.
Sometimes also known as Multiple of Money, MOM or MOC.
Example:
The private equity firm generated a 4x Multiple of Capital on its investment in the company upon the IPO. Their investment is now worth $400 million vs. their original investment of $100 million.
Many venture capital and private equity firms have an investment objective of generating returns based on multiples of capital. They are seeking to make investments that make a 5-10x MOM.
« Back to Glossary Index
