Equity multiple is total cash distributions received divided by total equity invested. An equity multiple of 2.0x means the investor received twice their invested capital back over the hold period.
Unlike IRR (which is time-sensitive), equity multiple is time-insensitive — it measures absolute return regardless of how long it took. A 2.0x multiple in 3 years is very different from a 2.0x multiple in 10 years, even though the multiple is the same.
LA multifamily value-add deals typically target equity multiples of 1.8x–2.5x over 5–7 year holds. Core stabilized targets 1.4x–1.8x. Higher multiples usually come with higher execution risk; lower multiples come with more predictable outcomes.
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