Explanation

Multiple of Invested Capital (MOIC) is calculated as:

$\text{MOIC} = \frac{\text{Total Value Realized + Unrealized Value}}{\text{Total Capital Invested}}$

In this scenario:

• Both funds doubled the value of their investments
• This means both have a MOIC of 2.0 (since 2x the invested capital)
• The time taken to achieve this return does not affect the MOIC calculation

Key Points:

1. MOIC is a simple multiple that measures total value relative to invested capital
2. It does not account for the time value of money or the holding period
3. Both funds achieved the same absolute return (doubling the investment)
4. While Fund 1 achieved this faster, the multiple remains the same

Comparison with Other Metrics:

• Internal Rate of Return (IRR) would be higher for Fund 1 (since it achieved the same return in less time)
• MOIC ignores the time dimension, so it remains identical

Correct Answer: B - the same as that of Fund 2