Download WSO's free Private Equity (PE) Returns model template below! This template allows you to build a private equity model showing various Internal Rate of Return (IRR) parameters. The template is plug-and-play, and you can enter your own numbers or formulas to auto-populate output numbers. The template also includes other tabs for other elements of a financial model.
IMPORTANT UPDATE: Full LBO Modeling Course Now Available as part of WSO Elite Modeling Package. Learn more here.
According to the WSO Dictionary,
"Internal Rate of Return or IRR is a financial metric used to discount capital budgeting and to make the net present value of all future cash flows equal to zero. For this reason, it is used alongside a Discounted Cash Flow analysis.
IRR is an estimate of the rate of return that an investment is expected to provide. Usually a higher IRR means a more profitable investment."
A screenshot below shows a sneak peak of the template.