Sometimes referred to as cash yield, cash-on-cash return measures the cash distributions an investor receives relative to the amount of cash they invested in a private equity deal—typically expressed as an annual percentage.

MOIC (Multiple on Invested Capital) refers to the total value returned to an investor—including all distributions and the value received at exit—divided by the original invested amount (e.g., a 2.0x MOIC means an investor received $2 back for every $1 invested).

Cash-on-cash return focuses on the cash actually paid out along the way (not just the final exit value), showing how much of the investor’s return is being realized through distributions during the hold period.

Internal rate of return (IRR) is the annualized return metric that calculates both cash flow and equity returned over the course of the entire holding period.

An accredited investor is someone who meets income and net worth criteria set by SEC regulations. Accredited investors are allowed to participate in investments not registered with the SEC.

To qualify:

You need an annual income of $200,000, or $300,000 combined income for two years, with an expectation of maintaining or increasing it this year.

Your net worth must exceed $1 million, excluding your primary residence.

Our hold period varies. Typically, we target a hold period of 3–5 years, although some deals may target as long as 10 years. The hold period is defined as the time between when the underlying business is acquired and when that business is sold and its proceeds are distributed to investors.