Realization Multiple

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Dictionary Says

Definition of 'Realization Multiple'

A private equity measurement that values the return paid to an investor. The multiple is named after the amount of return that is realized. The realization multiple is found by dividing the cumulative distributions from a project by the paid-in capital.

Realization Multiple
Investopedia Says

Investopedia explains 'Realization Multiple'

This method of valuing a project is often used by venture capitalists, and provides a return which can be compared across investment projects. The time value of money is ignored under this approach, which differentiates the realization multiple from other valuation methods, such as internal rate of return or net present value.
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'Realization Multiple'

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    ... It works on the modern portfolio theory that multiple asset classes can reduce the ...
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