Unexpectedly last week, I stumbled upon an S-Curve hidden between the lines of a study released by an established private equity funds of funds firm with a cautious introductory question: “do private equity funds sometimes just run out of steam?” Continue reading
Multiples
Is Benchmarking IRRs against an IRR Benchmark an Apples for Apples Comparison?
This question, posed in a recent comment to my Fooled by IRRs post, deserves an answer in the form of a post. It has made me realize that the inaugural post of my blog, The Quartiles’ Oxymoron, was not as self-explanatory as I thought it was. Continue reading
IRR Alpha Looks Bigger [More Subtly Fooled #1]
When a standard of measurement of returns allows close to 70% of investment managers (GPs) to claim their funds are first quartile performers (i.e. ranked in the top 25%) (1) – such as the case of the IRR – something is obviously wrong. Continue reading
Please Come In
A Dark Room is where a film is turned into clear pictures. In the DaRC Room, the risk-reward profile of private capital funds becomes immediately visible and finally intelligible within modern arbitrage pricing frameworks. Continue reading