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Public AI explainer video

MOIC and TVPI Explained Simply

You will often hear the term MOIC, meaning Multiple on Invested Capital. It is commonly used for the multiple on an individual investment, and people...

Prompt

Source idea used to generate this video.

# ToMotion AI Video Instructions: MOIC Explained in 2 Minutes **Topic:** MOIC — Multiple on Invested Capital **Duration:** 2 minutes **Format:** YouTube educational video, 16:9, 1920 × 1080 **Visual style:** Realistic Private Equity environment, clean white background, navy blue and green accents, professional financial dashboards, animated money flows, investment charts, and clear formulas. ## Scene 1 — Hook: How Much Did We Make? (0:00–0:15) **Narration:** “Imagine investing ₹50 crore in a Private Equity fund. How do you know whether your investment has performed well? Let’s understand MOIC, a simple metric that shows how many times your invested capital is represented by the total investment value.” **Relevant visuals:** - Open with a realistic fund manager reviewing an investment portfolio on a laptop. - Show ₹50 Cr entering a fund account. - Animate the money flowing into company investment cards. - Display the title: **MOIC Explained Simply**. **Animation:** Zoom into the ₹50 Cr figure, then transition to a clean financial dashboard. ## Scene 2 — Understand the Investment (0:15–0:35) **Narration:** “Suppose the fund received ₹50 crore from investors. It has already distributed ₹30 crore back to them, and its remaining investments have a net asset value of ₹45 crore.” **Relevant visuals:** Create three large financial cards appearing sequentially: 1. **Paid-in capital: ₹50 Cr** — investor money flowing into the fund. 2. **Distributions: ₹30 Cr** — money flowing back from the fund to investors. 3. **Remaining NAV: ₹45 Cr** — portfolio of companies displayed on a valuation dashboard. Use animated arrows to show the direction of money. Clearly distinguish money already distributed from value still held in investments. ## Scene 3 — Step 1: Calculate Total Value (0:35–0:55) **Narration:** “First, add the money already distributed to investors to the value remaining in the fund. ₹30 crore plus ₹45 crore equals ₹75 crore in total value.” **Relevant visuals:** - Show two separate blocks: ₹30 Cr distributed and ₹45 Cr remaining NAV. - Animate both blocks combining into one total-value card. **Display this formula prominently:** Total Value = Distributions + Remaining NAV ₹30 Cr + ₹45 Cr = **₹75 Cr** **Animation:** Reveal the formula first, then the figures, then highlight ₹75 Cr. ## Scene 4 — Step 2: Calculate the Multiple (0:55–1:15) **Narration:** “Next, divide the total value of ₹75 crore by the ₹50 crore of paid-in capital. The result is 1.50 times. Since this example combines distributions and remaining fund NAV, the standard fund-level metric is TVPI, or Total Value to Paid-In Capital.” **Relevant visuals:** - Display ₹75 Cr above a division line. - Display ₹50 Cr below it. - Animate the calculation resolving into **1.50×**. **Show the formula:** TVPI = (Distributions + Remaining NAV) ÷ Paid-In Capital TVPI = (₹30 Cr + ₹45 Cr) ÷ ₹50 Cr TVPI = ₹75 Cr ÷ ₹50 Cr = **1.50×** **Animation:** Highlight 1.50× in green with a subtle scale-up effect. ## Scene 5 — What Does 1.50× Mean? (1:15–1:40) **Narration:** “This means that for every ₹1 contributed, the fund has distributed or still holds value worth ₹1.50. The total value is ₹25 crore above the original ₹50 crore contribution, representing a 50% gain relative to paid-in capital. Remember, the remaining ₹45 crore has not necessarily been received in cash.” **Relevant visuals:** - Show ₹1.00 transforming into ₹1.50 in total value. - Display the additional ₹0.50 as a separate highlighted segment. - Show a split-screen: ₹30 Cr already distributed versus ₹45 Cr still invested. **Show the calculation:** Total Value Gain = ₹75 Cr − ₹50 Cr = **₹25 Cr** Gain % = ₹25 Cr ÷ ₹50 Cr × 100 = **50%** Avoid showing the entire ₹75 Cr as cash in the investor’s bank account. ## Scene 6 — Recap and Next Topic (1:40–2:00) **Narration:** “Let’s recap. Add ₹30 crore of distributions to ₹45 crore of remaining NAV. Divide the ₹75 crore total by ₹50 crore of paid-in capital, and you get 1.50 times. This tells us the value multiple, but not how long the investment took to generate that return. For timing, we use IRR.” **Relevant visuals:** - Show the complete calculation in a clean summary panel. - Animate the formula from left to right. - Transition to a calendar, clock, and investment cash-flow timeline. - End card: **Next Lesson: IRR — Internal Rate of Return**. ## Visual and editing rules - Use relevant financial visuals in every scene; avoid generic stock footage unrelated to the narration. - Keep the trainer's narration synchronised with every formula and number. - Reveal calculations in stages rather than displaying everything at once. - Use consistent ₹ crore labels throughout. - Use navy blue for invested capital, green for positive value, and a neutral colour for remaining NAV. - Use smooth transitions, restrained motion graphics, and readable typography. - Do not invent figures or alter the calculations. - Label all figures as illustrative. - Use **TVPI** as the primary metric for this fund-level example. Explain that MOIC is commonly used for individual investment multiples, with terminology depending on reporting methodology.

Narration

Narration used to create this video.

Video narration

You will often hear the term MOIC, meaning Multiple on Invested Capital. It is commonly used for the multiple on an individual investment, and people also use it more broadly in conversation. For this specific fund-level calculation, though, the standard label is TVPI: Total Value to Paid-In Capital. TVPI includes both distributions and remaining NAV, divided by the capital investors paid in. So here, TVPI equals ₹30 crore plus ₹45 crore, divided by ₹50 crore: 1.50 times. One more limit matters. A multiple tells you how much value exists relative to the money invested. It does not tell you how long that took. Reaching 1.50 times in two years is very different from reaching it in ten years. For the timing of cash flows and returns, investors use IRR, or Internal Rate of Return. You cannot calculate IRR from this multiple alone, because you need the dates and timing of the money going in and coming back. So, how do you know what "1.5 times" means? In this example, it means your ₹50 crore is represented by ₹75 crore of total value-like sales cash plus stock still on the shop shelf-not ₹75 crore of cash already received.