Gross Fund returns?
Howdy folks
let's say the fund's Gross asset value is $100 million. half of the fund($50mil) generates a 4% IRR and the other half($50 mil) generates a 10% IRR. did the total fund equate to 7% IRR? Returns are 10-year Projections.
It’ll depend on timing and when Capital comes back. Do the math in excel and play with inflows and outflows. You’ll see it’ll adjust.
got it.
For an extreme example let's say the 7% IRR was only outstanding for a month and the 4% IRR was for a full year. The gross IRR of the fund would be ~4.5%. In the opposite scenario the IRR would be ~9.5%.
It's totally depending on how long the capital was outstanding to get that IRR.
lets say both held for 10 years.
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