PERACS Alpha: Diving deeper into PE performance

Performance measurement in private equity can be a difficult task.  Yes IRR and MOIC are generally used because they are seemingly easy to calculate and understand, but does that inherently make them better? IRR has a number of mechanical problems. MOIC simply calculates the money multiple of cash in and cash out, but it does not account for the speed at which returns are generated. After all, any investor could double your money given enough time.

So how do we take private equity performance metrics to the next level? How can we dive deeper into the data and come out with a more clean and rich perspective of investments, fund managers and the private equity industry as a whole?

The PERACS Alpha is the opportunity to dig deeper and find that perspective.

Learn more about PERACS Alpha and how it can be broken down into distinct components to illustrate sources of returns:

Speaker 3- Generating Alpha in Private Equity from LPEQ on Vimeo.

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