Equity Multiple

The Equity Multiple is a financial metric used to evaluate the return on an investment, particularly in real estate or private equity. It measures how much total cash an investor receives compared to the initial amount they invested. For example, if you invest $100,000 and ultimately receive $300,000 from that investment, your equity multiple would be 3.0. This means you've earned three times your initial investment, accounting for both profit and return of capital. It's a useful way to assess the overall performance of an investment over its lifetime.