--- title: "Performance and benchmarking | Altss Taxonomy" description: "This hub covers how private-market fund and deal performance is measured and compared. Private funds call and return capital at irregular times, so…" canonical: "https://altss.com/taxonomy/performance-and-benchmarking" --- Topic hub # Performance and benchmarking This hub covers how private-market fund and deal performance is measured and compared. Private funds call and return capital at irregular times, so performance is measured with money-weighted returns such as the [IRR](https://altss.com/glossary/irr) and with multiples such as [TVPI](https://altss.com/glossary/tvpi) and [DPI](https://altss.com/glossary/dpi), not only with the time-weighted returns used for public portfolios. Sections run from return measures and multiples to [public market equivalent](https://altss.com/glossary/public-market-equivalent) methods, benchmarking against peer groups and [vintage years](https://altss.com/glossary/vintage-year), the reading of interim results such as the [J-curve](https://altss.com/glossary/j-curve), risk-adjusted measures, track-record attribution and reporting standards. Where several calculation conventions exist, such as gross and net IRR or the different PME methods, each convention has its own entry. Not in this hub: how the underlying holdings are valued, which is in [Valuation](https://altss.com/taxonomy/valuation), and asset-level underwriting metrics such as leverage multiples or cap rates, which sit with their asset class. Publisher: Altss LLCContent modified 2026-10-01 25 concepts · 1 framework ## Reference index ### Return measures 4 concepts - [Internal Rate of Return (IRR)](https://altss.com/glossary/irr) The internal rate of return (IRR) is the discount rate at which the net present value of an investment's cash flows equals zero; for a private fund it is the annualised, money-weighted return on the capital actually called and returned. - [XIRR (Date-Exact IRR)](https://altss.com/glossary/xirr) The date-exact IRR (XIRR) is the IRR computed from cash flows on their actual dates, each discounted by the exact time elapsed since the first flow; private fund IRRs are normally computed this way. - [Time-Weighted Return (TWR)](https://altss.com/glossary/time-weighted-return) Time-weighted return (TWR) is a rate of return that removes the effect of the size and timing of external cash flows by compounding the returns of the sub-periods between those flows. - [Gross vs Net Returns](https://altss.com/glossary/net-vs-gross-returns) ### Multiples 5 concepts - [Total Value to Paid-In (TVPI)](https://altss.com/glossary/tvpi) Total value to paid-in (TVPI) is a fund's cumulative distributions plus its remaining net asset value, divided by the capital its limited partners have paid in; it equals distributions to paid-in (DPI) plus residual value to paid-in (RVPI). - [Distributions to Paid-In (DPI)](https://altss.com/glossary/dpi) Distributions to paid-in (DPI) is the cumulative value a fund has distributed to its limited partners divided by the capital they have paid in; it is the realised component of total value to paid-in (TVPI). - [Residual Value to Paid-In (RVPI)](https://altss.com/glossary/rvpi) Residual value to paid-in (RVPI) is the net asset value of a fund attributable to its limited partners divided by the capital they have paid in; it is the unrealised component of total value to paid-in (TVPI). - [Multiple on Invested Capital (MOIC)](https://altss.com/glossary/moic) Multiple on invested capital (MOIC) is the total value of an investment or portfolio, realised proceeds plus unrealised value, divided by the capital invested in it; it is usually quoted gross, at deal or portfolio level. - [Paid-In Capital](https://altss.com/glossary/paid-in-capital-pic-contributed-capital) ### Public market equivalents 3 concepts - [Public Market Equivalent (PME)](https://altss.com/glossary/public-market-equivalent) Public market equivalent (PME) is a family of methods that compare a private fund's performance with a public index by applying the index's returns to the fund's own contributions and distributions. - [Kaplan–Schoar Public Market Equivalent (KS-PME)](https://altss.com/glossary/ks-pme) The Kaplan–Schoar public market equivalent (KS-PME) is the ratio of a fund's distributions plus final NAV to its contributions, with each cash flow compounded to the valuation date at a public index's return; above 1.0, the fund beat the index. - [Direct Alpha](https://altss.com/glossary/direct-alpha) Direct alpha is the annualised excess return of a private fund over a public index, computed as the IRR of the fund's cash flows after each has been compounded to the valuation date at the index's return. ### Benchmarking 3 concepts - [Benchmark](https://altss.com/glossary/benchmark) - [Vintage Year](https://altss.com/glossary/vintage-year) A fund's vintage year is the year used to group it with comparable funds for benchmarking and portfolio planning, usually the year of its first capital call or of its first legally binding close; conventions differ. - [Quartile Ranking](https://altss.com/glossary/quartile-ranking) Quartile ranking is the classification of a fund into one of four bands of its peer group, cut at the 25th, 50th and 75th percentiles of one performance metric; a top-quartile fund is at or above the 75th percentile. ### Interim performance 3 concepts - [J-Curve](https://altss.com/glossary/j-curve) The J-curve is the typical pattern in which a closed-end private fund's cumulative net cash flows and interim returns are negative in its early years and turn positive as investments mature and are realised. - [Realized vs Unrealized Returns](https://altss.com/glossary/realized-vs-unrealized-returns) - [Fee Drag](https://altss.com/glossary/fee-drag) ### Risk-adjusted measures 4 concepts - [Alpha](https://altss.com/glossary/alpha) - [Beta](https://altss.com/glossary/beta) - [Sharpe Ratio](https://altss.com/glossary/sharpe-ratio) - [Sortino Ratio](https://altss.com/glossary/sortino-ratio) ### Track record and attribution 2 concepts - [Track Record](https://altss.com/glossary/track-record) - [Track Record Attribution](https://altss.com/glossary/gp-track-record-attribution) ### Reporting standards 1 concept - [ILPA Reporting Template](https://altss.com/glossary/ilpa-reporting-template) The Institutional Limited Partners Association (ILPA) Reporting Template is the association's standard format for a private equity fund's quarterly report of fees, expenses, offsets and carried interest to its limited partners, set within a partner capital account roll-forward. ## Methodologies and frameworks - Standard · Version 1.1.0 ### [Altss Private Markets Performance Measurement Standard](https://altss.com/knowledge-center/frameworks/gp-lp-data-transparency-standards) The Altss standard for calculating, labelling and comparing private-fund performance: money-weighted IRR on actual dates, NAV as terminal value, TVPI, DPI, RVPI and MOIC, gross versus net, subscription-line effects, pooled versus average figures, horizon returns, and GIPS 2020 and ILPA alignment. ## Canonical URL https://altss.com/taxonomy/performance-and-benchmarking