Definition
Total distributions divided by total invested capital, expressed as a multiple.
Example
A 1.85× equity multiple returned $185,000 on a $100,000 investment over the hold period.
Related terms
Frequently asked questions
What does Equity Multiple mean in real estate?
Total distributions divided by total invested capital, expressed as a multiple.
How is Equity Multiple used in practice?
A 1.85× equity multiple returned $185,000 on a $100,000 investment over the hold period.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.