Private capital beta – the mythological entity whose existence and value have been denied for decades on the basis of the evidences drawn from the dispersion of IRRs of private capital funds – may be among fund investors, new DaRC Room evidences reveal. Continue reading
A very interesting post from Dan McCrum on the FT Alphaville blog, attractively titled “Abandon all hope, ye who venture here” unearths some truths, (is misled by and) fosters some consolidated misperceptions while opening up for some comments – a couple of which I made at the bottom of the post. Continue reading
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
I could not resist tying a rhetorical figure with financial mathematics. But there is no better description for IRR quartiles – an oxymoron.
In the private capital industry jargon, quartiles are ranked sets of IRR.
But, it is a well-established notion that IRR should not be used for ranking investments!