Location
Fund Gross and Net IRR and Fund Metrics (TVPI (net) and DPI) are located at the Fund Page within the Investor Relations application. You will now see added related tables for IRR and Fund Metrics below Fund Communications.
You will also see 3 new buttons at the top of the Fund page: IRR Calculator, Recalculate IRR Snapshots, and Recalculate Fund Metrics.
Finally, you will see 2 new buttons at the top of the Company Summary page: IRR Calculator and Recalculate IRR Snapshots.
Calculation Inputs and Assumptions
Calculations within the tables are generated monthly similar to valuation snapshots.
Gross IRR
Default start date: Date of first Transaction
Cash outflows: Cost of investment transactions
Cash inflows: Transaction proceeds and Fair Value as of end date of calculation
Note: Calculation will net inflows and outflows on the same date, so convertible security conversions do not impact the calculation.
Net IRR
Default start date: Due Date of first Capital Call
Cash outflows: Capital Calls (negative capital calls or returns of capital are treated as cash inflows)
Cash inflows: Distributions (negative distributions or clawbacks are treated as cash outflows) and Capital Account Balance as of the end date of the calculation
Note: For periods in which a capital account does not fall, the previous capital account is used, adjusted by capital calls and distributions during the period from the last capital account balance to the calculation end date. Cash flows exclude GP cash flows (i.e. GP capital calls, distributions, and account balances are excluded).
Company Summary IRR
Default start date: First transaction date
Cash outflows: Investment cost
Cash inflows: Proceeds (note that the calculation does not account for/delay proceeds held in Escrow – it strictly takes the amount entered in the proceeds field)
Note: Cash flows on the same date are netted.
TVPI
This metric is net TVPI = (Capital Balance + Total Distributions) / Total Capital Calls. This metric is only calculated for periods in which a capital balance exists. This metric also excludes GP cash flows and balances.
DPI
This metric is = Total Distributions / Total Capital Calls through the calculation date. It is calculated at every point there is a distribution or a capital call. This metric also excludes GP cash flows.
The IRR Calculator
On both the Fund page and the Company Summary page there is a button called IRR Calculator. By clicking this button, the user is prompted to input From Date and To Date. For Fund IRRs, the default start date is the earlier of the Gross or Net IRR default start dates. There is no reason to adjust this date. The end date can be adjusted; its default is the current date.
Once dates have been input, the user can click either Get Gross IRR Cashflows or Get Net IRR Cashflows for Fund IRRs or Get Cashflows for Company Summary IRRs. Cash flows are then presented in the table below, and the user can click Calculate. The IRR metric will appear at the bottom of the table, calculated to two decimal places (this cannot be changed).
Recalculation Buttons
These are used when a record (capital call, distribution, capital account, transaction, or valuation) has been created or edited, more recently than the metrics have been calculated. Metrics calculate on an intermittent basis, so there can be timing differences where metrics do not agree to underlying records. Click either the recalculate IRR Snapshots or Recalculate Fund Metrics buttons to ensure metrics are up-to-date.