IRR is like fish, when someone gets hold of it, it slips away. Hard to seize, hard to terminate – with incredible survival instinct, it tries to jump out of any bucket where it has been secluded. Continue reading
Duration
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
Coller’s IRR Card [More Subtly Fooled #2]
If there’s an iconic badge for private equity valuation this is probably Coller Capital’s IRR and compound interest “cheat sheet” Card. Continue reading
Riding Private Markets’ S-Curves
As I write about interpreting and predicting private markets’ returns, for the readers who missed one of my previous posts, I confirm there is no misspelling in the headline, it’s an S. Continue reading
Why IRR, PME Induce Inaccurate Allocation Decisions
In one of my previous posts, I wrote about the importance of time – of correctly framing time – for purposes of comparability and pricing. The topic is so critical not to require a second round that adds more details and practical implications. Continue reading
Relativity Theory, Money-Time Curvature and Private Capital Pricing
Wonder what relativity theory and money-time curvature have to do with rational pricing of private capital? The two quotes below, freely adapted from the Wikipedia pages about space-time and reference frame, may give a hint. Continue reading
The DaRC Side of the J-Curve
It’s not a “J”, it’s an “S”! Coming out from the DaRC Room, that’s what the picture is telling! 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
