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How is private equity performance measured?
Curious about private equity
In India, private equity performance is measured using various metrics such as internal rate of return (IRR), multiple of invested capital (MOIC), cashoncash return (CoC), and total value to paidin (TVPI) capital. The IRR measures the annualized rate of return that an investment generates, while the MOIC measures the multiple of invested capital returned to investors. CoC is the ratio of cash distributions to invested capital, while TVPI is the ratio of the total value of an investment to the amount of capital invested. Private equity firms and investors use these metrics to evaluate the success of their investments and compare them to industry benchmarks.
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