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XIRR, DPI, TVPI, NAV, yield, and other return metrics explained
11 articles
Explore AltTrack's database of published alternative investment allocations and returns from family offices, investor networks, institutions, and investment firms.
Use a carried interest calculator to translate gross return, management fees, preferred return, and GP catch-up terms into estimated net IRR and investor proceeds.
Use an IRR calculator built for irregular private-investment cash flows. Learn what to enter, why XIRR is the right calculation, and how to interpret XIRR alongside DPI and TVPI.
NAV is the most frequently reported number in private market investing — and the most misunderstood. Here is what NAV actually measures, how sponsors calculate it, why it moves slower than public markets, and how to read it without over- or under-trusting it.
DPI and TVPI are the two most important return multiples in private equity and private market investing. Here is what each one measures, how to calculate them, what the difference between them tells you, and how to use them to evaluate your portfolio.
XIRR and IRR are both internal rate of return calculations, but they measure different things. Here is the difference between XIRR and IRR, why the distinction matters for private equity and real estate investments, and which one you should use to evaluate your portfolio.
XIRR is the most accurate way to measure returns on private market investments — but most investors calculate it wrong. Here is how to calculate XIRR correctly across a portfolio of real estate syndications, private equity, and private credit funds.
Adding alternatives to a portfolio is straightforward. Building a well-constructed alternative portfolio — with intentional diversification, realistic liquidity planning, and appropriate sizing — is considerably harder. Here is how experienced investors think about it.
Every private market investment has a capital stack — a hierarchy that determines who gets paid first, who takes the most risk, and who has the highest return potential. Understanding where you sit in that stack is fundamental to evaluating any deal.
The preferred return is one of the most cited terms in private fund investing. It is also one of the most misunderstood. Here is what a preferred return actually means, how the waterfall works after it is met, and the scenarios where a pref provides less protection than investors expect.
The year you make a private market investment has an outsized impact on returns that most investors underestimate. Here is what private equity vintage year means, why it matters, and how to diversify across market cycles intentionally rather than accidentally.