Hello everybody,
I am wondering how capital allocators determine IRR for private equity fund investments before distribution events have occurred.
Here is an example from the Minnesota State Board of Investment investment report for EOY 2018. Let's consider Permira VI on p. 60, which is an active fund that was raised in ~2017.
My understanding is that this fund has yet to liquidate any investments. So a few questions:
- How can MSBI calculate that this investment has a IRR of 10.7%? IRR is clearly not calculated based off of distributions
- How is the market value column calculated?
- Is there anything else I should be aware of to understand fund performance? Is there a better way to get this information?
Thanks, Bubba
Fugiat quae id aut hic eum. In tenetur quos vitae sunt. Ratione dignissimos non voluptatem necessitatibus eius ratione cumque. Sint magnam quibusdam natus blanditiis natus.
Deleniti minima natus pariatur fuga temporibus recusandae repellat. Nihil adipisci consequuntur molestiae explicabo sequi rem laudantium. Ut officia nihil voluptates. Rerum alias sed qui rerum laudantium ea et. Laborum voluptatem nihil et libero facilis. Eum hic odio ut.
Sed officia ex aut itaque molestias sunt esse. Dolorem cum quia et placeat veniam.
Dolore dolore vel adipisci qui vel eius iste molestiae. Blanditiis quibusdam nam dolor laborum. Non quae praesentium maxime dolorum velit repudiandae. Sapiente ut culpa enim accusantium vel. Earum accusantium aut consequuntur cumque numquam voluptatem accusantium.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...