How are private market investments valued and how is performance measured?

Valuation of private market investments can be more complex and less transparent than in public markets, as there is often less frequent trading of the assets. The value of private market investments is typically determined through a combination of financial and nonfinancial factors such as financial statements, cash flow projections, market comparables, and industry trends. Additionally, private market investments may be valued based on the performance of the underlying businesses or assets.

Performance of private market investments is typically measured through internal rate of return (IRR) and multiples of invested capital (MOIC). IRR measures the annualized rate of return on the investment, taking into account the timing and size of cash flows, while MOIC measures the multiple of the original investment that was returned to the investor. It's worth noting that the actual returns and timing of cash flows may vary from initial projections, particularly for longterm investments.