Track Record
Track record is a manager’s historical performance and evidence of results, ideally tied to attributable decisions and outcomes.
Allocator relevance: A core selection input—but only valuable if attribution, consistency, and net outcomes are credible.
Expanded Definition
Track record includes returns (IRR, MOIC, DPI/TVPI), risk behavior, and qualitative evidence of how returns were achieved. Allocators assess whether performance is repeatable: sourcing edge, underwriting standards, team stability, and whether outcomes were driven by a few outliers. They also care about net performance and the reliability of marks.
Track record without attribution is marketing; track record with attribution is diligence-grade evidence.
How It Works in Practice
Managers present track record, allocators validate through data, references, and documentation. They compare to benchmarks by strategy and vintage and evaluate persistence.
Decision Authority and Governance
Governance sets what counts as “valid” track record evidence, especially for spinouts and emerging managers. ODD and audit quality support credibility.
Common Misconceptions
- A strong track record guarantees future performance.
- Gross track record is what matters.
- One fund outcome defines the manager.
Key Takeaways
- Track record must be attributable and net-relevant.
- Evaluate consistency and drivers, not just numbers.
- Validation is as important as the data itself.