Equity Multiple

In marketable real estate, the Equity Multiple is defined as the ratio used to understand the total cash return over the lifespan of an investment. It’s the net profits earned plus total equity invested into an investment, divided by the total equity invested. Equity Multiple is a means used to calculate an investment opportunity that has a longer lock-in period.

The formula for calculating Equity Multiple is: –

Equity Multiple = net profit + total equity invested / Total Equity invested.

 

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Investing in venture capital funds is inherently risky and illiquid. It involves a high degree of risk and is suitable only for sophisticated and qualified investors.