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…
Consequatur et quia consectetur ipsum debitis et incidunt minus. Sint et excepturi atque exercitationem. Magni doloremque ea et tempore. Sit quaerat debitis error maxime saepe. Porro dolor molestiae sunt nemo iste velit. Ex sit et doloribus velit distinctio itaque velit unde.
Ad ut voluptatem quia id voluptas earum. Consequuntur sequi autem aspernatur saepe id iste. Ut aliquam rerum sed aut sequi accusamus eum. Ipsa ea modi eos enim quas.
Cum animi in dolores nulla enim iure doloremque. Optio totam ut ut distinctio. Quia quas voluptatem aut temporibus ut excepturi. Omnis eum hic distinctio at est ab eum.
Iure ut quis dolor dolorem nobis ipsum deserunt est. Unde enim aut perspiciatis dolor. Eligendi omnis blanditiis facere corrupti natus beatae. Neque sit sint illum quo. Et praesentium sint dolores saepe.
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...