How We Measure
Last updated: April 2026
IRR (Internal Rate of Return)
XIRR is a money-weighted annualized return calculated from your capital call and distribution records using the Newton-Raphson method, falling back to bisection when that does not converge. For active deals, the current investment amount is used as residual value. Exited deals use zero residual unless you provide an override. Because XIRR is money-weighted, it reflects the timing and size of your own cash flows. A time-weighted return answers a different question by reducing the effect of external cash flows.
MOIC, DPI, and TVPI
Multiple on Invested Capital (MOIC) is calculated as (distributions + residual value) / invested capital. DPI (Distributions to Paid-In) excludes residual value. TVPI (Total Value to Paid-In) includes it. All three update automatically as you record transactions. These are standard private-market reporting terms; the ILPA Quarterly Reporting Standards lists DPI, RVPI, and TVPI as key valuation metrics.
Monte Carlo simulations
Scenario analysis runs 1,000 paths by default. Exit multiples and hold periods are sampled from normal distributions with configurable standard deviations. Each path derives an Exit Multiple and an annualized return from a single invested amount returned at exit. This is a hypothetical forward projection, not the canonical MOIC above: it does not account for distributions already received and does not model distribution timing, interim cash flows, or the sponsor's waterfall, so the reported IRR is an annualized equivalent (CAGR), not a cash-flow IRR. Results are clamped to reasonable ranges (Exit Multiple 0.05-20x, hold period 0.25-30 years) to prevent outlier distortion.
Waterfall allocation
The fund waterfall calculator is a simplified illustrative allocation. It multiplies LP capital by a hurdle rate in a single step. It does not perform dated preferred-return accrual, compounding, or cumulative arrears, so a deal held eight years and one held eight months receive the same preferred return. This is the same class of disclosed simplification as the Monte Carlo section above: it is a hypothetical allocation aid, not a definitive carried-interest calculation, and it is excluded from LPAC reports, public LP portals, and other formal shared artifacts until a dated engine is certified.
AI deal scoring
Scores range from 0-100 and evaluate four weighted factors: sponsor track record (25%), market viability (20%), fund structure (25%), and target returns (30%). Scores are generated by Claude and should be used as one input alongside your own due diligence, not as investment advice.
AI document parsing fair use
Fair use means about 2,200 documents over a rolling 12 months (trailing 365 days, no monthly reset), plus a daily breaker of about 220 documents a day that resets at midnight UTC. This is far above normal portfolio use; if you hit it, get in touch and we will sort it out.
Questions about our calculations? Contact us via our help page.
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