--- title: "Private-credit MOIC and IRR: what two 1.31x records reveal | Altss Blog" description: "CalPERS OHA accounts show how similar private-credit multiples can conceal different cash returns. Worked examples explain IRR and reinvestment." canonical: "https://altss.com/blog/private-credit-moic-irr-cash-flow-timing-calpers" --- [Altss Research](https://www.linkedin.com/company/altss) 6 min read Updated Nov 13, 2026 Share # Private-credit MOIC and IRR: what two 1.31x records reveal CalPERS OHA accounts show how similar private-credit multiples can conceal different cash returns. Worked examples explain IRR and reinvestment. [Back to blog](https://altss.com/blog) Share [LinkedIn](https://www.linkedin.com/sharing/share-offsite/?url=) [X](https://x.com/intent/tweet?url=&text=Private-credit%20MOIC%20and%20IRR%3A%20what%20two%201.31x%20records%20reveal) Copy link Two private-debt accounts in CalPERS's November 2026 fee-disclosure materials show the same rounded investment multiple, 1.31x, alongside net IRRs of 13.2% and 15.6%. Their cash returned to CalPERS also differs substantially. For an allocator, the comparison connects three decisions: how much value an investment has generated, when capital comes back, and what that capital can fund next. The [CalPERS disclosure](https://www.calpers.ca.gov/documents/202611-invest-agenda-item05e-01-a/download?inline=) is part of the published materials for its [November 16, 2026 Investment Committee meeting](https://www.calpers.ca.gov/about/board/board-meetings/invest-202611). The report heading says June 30, 2026, but the [explanatory notes](https://www.calpers.ca.gov/documents/202611-invest-agenda-item05e-02-a/download?inline) specify March 31, 2026 for the underlying private-debt data. These are historical account observations in material available before the meeting, not a new allocation decision. ## Two 1.31x records, different cash returned The table identifies both accounts as 2021 vintage: - OHA CA Customized Credit Fund, L.P. – OHA Other Advisory Client Investment: $437.8 million contributed, $106.7 million distributed and $572.7 million in distributions plus remaining value; net IRR of 13.2%. - OHA CA Customized Credit Fund, L.P. – OHA Senior Private Lending Fund (CA 3): $490.0 million contributed, $203.5 million distributed and $642.3 million in distributions plus remaining value; net IRR of 15.6%. Calculated distribution multiples are 0.24x and 0.42x; remaining-value multiples are 1.06x and 0.90x. Total multiples to three decimal places are 1.308x and 1.311x. For planning purposes, a dollar already distributed and a dollar still carried in a fund valuation occupy different places in the portfolio. The latter has not yet been returned to the investor. Any distributed amount must still be checked against recall provisions, recycling arrangements and the LP's other obligations before it becomes available for a new commitment. CalPERS defines its multiple using distributions plus remaining value over contributed capital, and net IRR after fees, expenses and carried interest. The table omits dated cash flows. Neither vintage nor these cumulative totals explains the IRR gap or establishes superior risk-adjusted performance. ## Keep the dollars fixed and move the payment date Consider a deliberately fictional investment with a $100 contribution on January 1, 2021. Assume all amounts are net cash flows to the investor, there are no additional calls or costs, and the investment is fully realized at the final payment. - A single $130 payment on January 1, 2024 produces a 1.30x multiple and an annualized IRR of approximately 9.14%. - Moving that same $130 payment to January 1, 2026 leaves the multiple at 1.30x but reduces the annualized IRR to approximately 5.38%. These calculations use actual dates and a 365-day year. Each investment produces the same $30 gain on $100 contributed. The longer wait reduces the annualized result. This is an isolated timing experiment, not a reconstruction of either OHA account. Now keep the January 1, 2024 end date but change the distribution pattern: $10 on January 1, 2022, $10 on January 1, 2023 and $110 on January 1, 2024. Total proceeds remain $130 and the multiple remains 1.30x. The IRR becomes 10% because some cash reaches the investor earlier. That third case matters for credit underwriting. A terminal payment and a sequence of payments can produce the same total value while supporting different cash budgets. An LP comparing prospective investments should model the expected schedule of cash receipts alongside the total-return case, then test delayed payments and reduced distributions. A headline multiple alone cannot supply that schedule. ## Returned cash creates a second investment decision The fictional annual-payment case has a 10% IRR. That figure does not promise that the investor can earn 10% on the two early $10 distributions after they leave the investment. If those distributions earn nothing until January 1, 2024, the investor has $130 in total cash at that date. If the investor separately earns 5% a year on them, the first $10 grows for two years and the second for one. Together with the final $110 payment, terminal wealth is $131.525, or about $131.53. This second calculation assumes annual compounding and ignores taxes and additional costs. The original investment's cash flows and 10% IRR are unchanged in both cases. The difference belongs to the investor's subsequent use of the distributions. A portfolio with another suitable commitment ready to draw can use early cash differently from one that leaves the proceeds idle or needs them for spending. This gives an investment committee a more useful comparison than selecting the highest IRR: set a common portfolio horizon, identify when each investment releases cash, and state what happens to that cash afterward. Keep the reinvestment assumption visible. A high return on a short exposure and a lower return maintained over a longer exposure answer different portfolio needs. ## Request the cash-flow record behind the comparison For these CalPERS observations, the relevant unit is the pension's investment in each named vehicle. A manager's aggregate fund return may describe a different investor population. Likewise, a loan-level gross MOIC and an LP-level net investment multiple have different cash-flow bases. [ILPA's Performance Template guidance](https://ilpa.org/wp-content/uploads/2025/04/ILPA-Performance-Template-Suggested-Guidance-Granular-Methodology-v1.1.pdf), developed for private equity, offers a useful reporting model. It separates transactions between investors and the fund from transactions between the fund and its investments. Its fund-level presentation includes net IRR and net TVPI with and without the effect of subscription facilities. The template concerns the aggregate allocation of fee-paying investors, rather than an individual LP's performance. Those conventions should be agreed explicitly when requesting comparable credit data; they do not establish that either OHA account uses the template. For a proposed allocation, obtain the dated contribution and distribution record, the residual valuation and the reporting population that produced the quoted return. Ask for the expected future cash schedule on the same basis, including amounts that may be recalled. Financing deserves its own comparison; Altss's analysis of [Ares's levered and unlevered credit returns](https://altss.com/blog/ares-ace-levered-unlevered-credit-returns) examines how fund versions and financing treatment change the selected return series. The resulting investment memo can make an actual choice: how much capital the proposed investment is expected to return by the portfolio's next funding date, how much value remains exposed, and how the plan changes if distributions arrive later. That turns a multiple-and-IRR comparison into a decision about the use of capital. 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