Track Record

Definition

A track record is the historical record of a manager’s investment outcomes, typically expressed through standardized performance metrics and supported by underlying evidence. A credible track record includes not only headline returns, but also context: how returns were generated, what risks were taken, and whether outcomes are repeatable under similar conditions. Allocator Context Allocators evaluate track records to assess strategy fit, expected return profile, drawdown behavior, and manager discipline. For private markets, track records often include fund-level metrics (IRR, DPI, TVPI, MOIC) and deal-level attribution. For hedge funds, it may include time series returns and risk statistics. Track record evaluation is typically relative—benchmarks and peer sets matter. Decision Authority Track record is central to manager selection and re-up decisions. Weak documentation, inconsistent attribution, or unclear ownership of results can trigger deeper diligence or disqualification. For emerging managers, allocators often apply higher standards for transparency due to limited institutional history. Why It Matters for Fundraising Track record is not just numbers; it is evidence. Managers who can present clean attribution, explain performance drivers, and show discipline across cycles move faster through allocator approvals. Key Takeaways Track record is performance plus evidence Attribution clarity drives trust Benchmarks and peer sets shape evaluation Strong documentation accelerates approvals