Total cash returned divided by total cash invested.
A 2.0× multiple doubles your money — but says nothing about how long it took. Pair it with IRR, which prices in time.
Formula: EM = Total Distributions ÷ Equity Invested
Example: $180,000 back on $100,000 in = 1.8×.
FAQ
What is Equity Multiple in simple terms?
A 2.0× multiple doubles your money — but says nothing about how long it took. Pair it with IRR, which prices in time.
How is it calculated?
EM = Total Distributions ÷ Equity Invested. Example: $180,000 back on $100,000 in = 1.8×.