easy · Private Credit & Debt fund-structures-returns-economics
A PE fund's performance report shows an IRR of 21.8% and a MOIC of 2.68× for a specific deal.
If the fund's net TVPI is only 1.15×, what is the most likely explanation?
- The fund has already returned all capital to LPs
- The specific deal was successful, but the overall fund is still in its early stages
- The IRR is high because the deal was held for 15 years
- The GP has distributed all profits as 'Carried Interest'
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