medium · Private Credit 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 fully returned all committed capital back to its LPs
- The specific deal was successful, but the overall fund is still in its early stages
- The IRR looks unusually high only because the deal was held for over 15 years
- The GP has already distributed all of the fund's realized profits as carried interest to itself
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