---
id: "prereq-moic"
type: "prereq"
source_timestamps: ["¶4"]
tags: ["finance", "private-equity-metrics"]
related: ["concept-super-performer-cohort", "claim-super-performer-moic"]
reason: "Required to understand the magnitude of the '6.2x' outperformance metric cited for the super-performer cohort."
sources: ["tail2"]
sourceVaultSlug: "hbr-seg-tail2"
originDay: 2
articleStem: "hbr-tail-121-best-pe-backed-ceos"
sourceUrl: "https://hbr.org/2026/04/what-the-best-private-equity-backed-ceos-do-differently"
sourceTitle: "What the Best Private Equity-Backed CEOs Do Differently"
---
# Multiple on Invested Capital (MOIC)

**Prerequisite knowledge.** **MOIC (Multiple on Invested Capital)** is a core private equity metric measuring the **return on an investment relative to its initial cost** (e.g., a 6.2x MOIC means the investment returned 6.2 times the capital invested).

**Why it's needed:** to understand the magnitude of the **6.2x** outperformance cited for the [[concept-super-performer-cohort]] in [[claim-super-performer-moic]]. Context: independent PE benchmarks (Bain, PitchBook, Cambridge Associates) commonly cite **2.0–2.5x MOIC** as a typical target/realized outcome over a 4–6 year hold, which is why 6.2x is described as 'more than double' the industry target. Note MOIC ignores time — it is not IRR — so hold length matters when comparing.


## Related across articles
- [[prereq-value-creation-plan]]
- [[prereq-investment-thesis]]