PEINVEST
A benchmarking methodology that compares PE fund returns to what would have been earned by investing the same cash flows in a public market index. PME enables a like-for-like comparison of PE performance against liquid public market alternatives.
The annualized rate of return that equates the present value of all cash inflows with the present value of all cash outflows in an investment. IRR is the most widely used return metric in PE and accounts for the timing and magnitude of cash flows.
A return metric that measures the total value generated relative to the amount of capital invested, expressed as a multiple. A 2.5x MOIC means the investment returned 2.5 times the original capital invested. Unlike IRR, MOIC does not account for the time value of money.
The most complete return metric in PE, measuring the total value of a fund (distributions plus remaining NAV) relative to total capital contributed. TVPI equals DPI plus RVPI, capturing both realized and unrealized returns in a single measure.