2x (or 3x, 4x, etc.)
A return/realization multiple. In private equity, a measurement showing how much has been paid out to investors. A realization multiple is found by dividing the cumulative distributions by the paid-in capital. Return/Realization Multiple = Cumulative Distributions / Paid-In Capital (e.g. 2x means an investor or SPV received back two times the amount that it invested […]