Measure a private fund properly, not just the way it reports itself.

TVPI, DPI, RVPI and IRR computed from real cash flow schedules, gross versus net, the effect of subscription lines, and how to benchmark a fund against its peers and the public market.

The core metrics Benchmarking, economics and planning

The core metrics

17 min read

TVPI, DPI, RVPI and MOIC

The four multiples on every fund report: exact formulas, what counts as paid-in, and how the mix moves from paper value to cash over ten years.

16 min read

Committed, called and unfunded capital

Commitments, capital calls, paid-in ratios, unfunded obligations, recallable distributions and overcommitment, with worked schedules.

16 min read

IRR and XIRR for private funds

How the internal rate of return is defined, solved and dated for private funds, and where it misleads: multiple roots, reinvestment and quick flips.

13 min read

Gross versus net returns and fee drag

A fully worked bridge from gross deal returns to net LP returns through fees, expenses and carry, and why the drag bites harder on weaker funds.

13 min read

Subscription lines and IRR distortion

How subscription credit facilities delay capital calls, lift reported IRR while trimming the multiple, and what LPs should ask GPs to disclose.

13 min read

Time-weighted versus money-weighted returns

How TWR and IRR are calculated, why the same portfolio can show both a gain and a loss, and why they cannot share a page uncorrected.

Benchmarking, economics and planning

17 min read

Public market equivalent (PME)

Long-Nickels PME, Kaplan-Schoar PME, PME+ and Direct Alpha, each worked on one fund, and why an IRR cannot be set against an index return.

15 min read

Vintage year benchmarking and quartiles

How vintage years are defined, how quartile breakpoints are computed, and why early rankings, survivorship and method choice move the verdict.

15 min read

Cash flow forecasting and commitment pacing

The Takahashi-Alexander model worked year by year, then pacing a program to a target allocation, overcommitment and the denominator effect.

15 min read

Waterfall and carried interest math

Whole-fund and deal-by-deal waterfalls computed tier by tier, with 100% and 80% catch-ups, clawback, hard and soft hurdles and the GP commitment.

14 min read

Management fee math and fee offsets

Fee bases, step-downs, a ten-year fee schedule, transaction and monitoring fee offsets at 100% and 80%, expense caps and why small funds feel fees more.

14 min read

Performance attribution for private investments

A value creation bridge for one deal (revenue, margin, multiple, deleveraging), fund attribution by sector and vintage, loss ratios and persistence.