Direct Deal IRR and MOIC Calculator
Model a direct or co-investment deal and see gross and net multiple on invested capital (MOIC) and internal rate of return (IRR) after deal fees, management fees and carried interest. Free, no login, and nothing you type leaves your browser.
How the Calculator Works
Gross figures use only your investment, the yearly distributions and the exit proceeds. Net figures add the upfront fee at entry, the annual fee each year, and carried interest at exit. Carry is charged on profit above a compounding hurdle on everything you paid in, with no catch-up. IRR is solved from the yearly cash flows.
The fee defaults echo terms quoted in The Single Family Office by a sponsor recovering direct expenses plus 1% at funding and 1% a year after. Set fees to zero to model a pure direct deal, which is a large part of why family offices prefer direct investments.
Assumptions and Sources
- Example sponsor terms of 1% at funding and 1% a year thereafter. Source: The Single Family Office, by Richard C. Wilson
- Simple whole-year cash flows, carry over a compounding hurdle with no catch-up. Real deal documents differ; check them with your attorney.. Source: Family Office Club calculation method
Questions About This Calculator
What is the difference between MOIC and IRR?
MOIC is total cash back divided by cash in. IRR also counts time, so the same 2.0x is a much better result over three years than over ten.
Why is net MOIC lower than gross?
Fees raise what you paid in and carry reduces what you get back. The gap shows the cost of investing through a sponsor compared with a direct deal.
Informational only, not financial, legal or tax advice. Confirm figures with your own advisors.