MOIC vs IRR: When Private‑Equity Firms Chase Multiples Over Annualized Returns

This episode explores why private‑equity managers sometimes prioritize a higher MOIC over a robust IRR, examining how timing, liquidity needs, leverage structures and market cycles shape that trade‑off. It breaks down the economic logic behind extended holding periods versus rapid exits and what it means for portfolio companies’ growth prospects. Learn more about your ad choices. Visit megaphone.fm/adchoices