Since inception through Sep 2016, Apollo Global, one of the prominent private equity firms with $312 bn AUM (as of 2019), generated 39% gross IRR and 25% net IRR. That’s very good, but what does it really mean? More precisely, does it really mean anything?
Thanks for the revert . I am actually trying to create something similar for India VC/PE space as the family offices here are being missold PE/VC funds by private banks with elevated IRRs (they are showing IRRs of previous funds which are still deploying) and most investors cant make out the difference between IRR and CAGR..
Also one more data point, in tranche 1, you have put fund 1, 2 4 etc but while writing you deployed the returns of fund 1 to fund 4 thus skipping fund 2 investment
Hi Shinya, I missed the point where on combining the two tranches creates a portfolio of return of 11.8x and not 13.5x which the table shows..
Also Net MOIC based on aggregated Net IRR , this is based on assumption that 200 million were invested in one shot into a product which has generated 25% IRR ?
Hi Shinya, I missed the point where on combining the two tranches creates a portfolio of return of 11.8x and not 13.5x which the table shows..
Also Net MOIC based on aggregated Net IRR , this is based on assumption that 200 million were invested in one shot into a product which has generated 25% IRR ?
Unfortunately, You Can’t Eat IRR
Hi Shinya
Thanks for the revert . I am actually trying to create something similar for India VC/PE space as the family offices here are being missold PE/VC funds by private banks with elevated IRRs (they are showing IRRs of previous funds which are still deploying) and most investors cant make out the difference between IRR and CAGR..
Also one more data point, in tranche 1, you have put fund 1, 2 4 etc but while writing you deployed the returns of fund 1 to fund 4 thus skipping fund 2 investment
Hi Shinya, I missed the point where on combining the two tranches creates a portfolio of return of 11.8x and not 13.5x which the table shows..
Also Net MOIC based on aggregated Net IRR , this is based on assumption that 200 million were invested in one shot into a product which has generated 25% IRR ?
Hi Shinya, I missed the point where on combining the two tranches creates a portfolio of return of 11.8x and not 13.5x which the table shows..
Also Net MOIC based on aggregated Net IRR , this is based on assumption that 200 million were invested in one shot into a product which has generated 25% IRR ?