Deal Attribution
Deal attribution is the process of explaining which investments, decisions, and drivers contributed to performance outcomes.
Allocator relevance: Enables allocators to evaluate whether results come from repeatable decisions versus one-off wins or market tailwinds.
Expanded Definition
Attribution links outcomes to causes: sourcing edge, underwriting standards, entry price, value creation, exit timing, and portfolio construction. In private markets, attribution should distinguish realized vs unrealized drivers and avoid over-crediting paper gains.
For allocators, attribution is a test of honesty and process clarity—strong managers can explain both successes and mistakes without narrative inflation.
How It Works in Practice
Managers break down performance by deal, vintage, sector, and driver (multiple expansion, revenue growth, leverage, operational improvements). Allocators compare attribution to the manager’s stated thesis and verify through reporting packages and reference checks.
Decision Authority and Governance
Attribution requires consistent data standards and transparent reporting. Governance should prevent selective storytelling by requiring systematic reporting across the entire portfolio, not just the top winners.
Common Misconceptions
- Attribution is only about listing top performers.
- Unrealized gains should be treated like realized results.
- Attribution can be done without consistent data definitions.
Key Takeaways
- Attribution connects returns to decisions and drivers.
- Consistency across the full portfolio is the credibility test.
- Realized vs unrealized separation is essential.