IRR vs MOIC
Hi all !
Just trying to understand the relevant metrics PE funds are using to value their investments: Why/when would a sponsor be looking at a metric instead of the other ? I do understand the time factor difference between the two, what is still unclear to me is what metric sponsors use in their thinking (when considering an investment, when considering an exit, ...) ?
Cheers
Carry is ultimately driven by MoIC as long as IRR exceeds the hurdle rate. Take a guess on which is more important....
You answer suggests MoIC, but one must first look into IRR or else the whole thing is irrelevant ... So I'd say equally important ... I've just looked into carry and understood how it works, thank you very much for your answer !
This topic was discussed ~1 month ago: https://www.wallstreetoasis.com/forums/which-is-more-important-irr-vs-m…
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