In one sentence
A return metric expressing total cash returned to equity divided by total cash invested, over the life of an investment.
The longer version
Equity multiple answers a simple question: for every dollar invested, how many come back? A 2.0x multiple means the investment returned twice the capital. Unlike IRR, it ignores timing, so it pairs with IRR for a fuller picture.
While equity multiple is an equity-side metric, lenders see it in sponsor projections and use it to sanity-check the business plan's ambition.
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