Private equity performance metrics explained
Asora provides a comprehensive breakdown of private equity performance to help you evaluate the exposure, profitability, and return of your alternative investments. This guide details each calculated metric, including how they’re derived, which transaction subtypes affect them, and what they reveal about your portfolio.
Core metrics
These foundational metrics reflect capital activity, drawdowns, and valuation.
| Metric | Definition & Calculation | Transaction Subtypes & Logic |
|---|---|---|
| Commitment | Total capital you've committed to invest | Subtype: Buy / Capital Commitment |
| Funds Called | Capital actually transferred to the fund |
Increases: – Buy / Capital Call – Buy / Buy – Buy / Subscription – Buy / Recallable Equalisation Redemption – Buy / Buy – Loan Adjustment – Contribution / Other Contribution Decreases: – Sell / Equalisation Receipt – Sell / Recallable Equalisation Receipt |
| Remaining Commitment |
Capital not yet drawn Formula: Commitment – Funds Called |
Decreases with: – Buy / Capital Call – Sell / Commitment Reduction |
| Drawn % |
Proportion of commitment already called Formula: (Commitment – Remaining Commitment) ÷ Commitment × 100 |
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| Funds Returned | Capital returned by the fund (excluding income) |
Subtypes: – Sell / Sell – Sell / Redemption – Sell / Liquidation – Income / Capital Distribution |
| Income Distributed | Cash income (not capital) received from fund holdings |
Subtypes include: – Dividend – Fund Distribution – Interest Income – Capital Gains – Rental Income – Scrip Dividend – Other Refunds– Fee Refunds – Recallable Distribution |
| Current Value | Most recent appraised NAV of your investment, converted to your reporting currency using current FX rates | Reflects the fund’s latest estimate of your position’s value |
Performance ratios
These metrics evaluate performance through return multiples and IRR.
| Metric | Formula / Definition | Transaction Logic |
|---|---|---|
| Realized Multiple | (Funds Returned + Income Distributed) ÷ Funds Called | Includes all related subtypes |
| Unrealized Multiple | Current Value ÷ Funds Called | Based on current NAV |
| Total Multiple (MOIC) | Realized Multiple + Unrealized Multiple | Composite |
| IRR (Internal Rate of Return) |
Annualized rate that equates cash flows to zero Included (positive): All Funds Returned + Income Distributed Included (negative): Buy / Capital Call Final cash flow: NAV (Current Value) Excluded: Buy / Capital Commitment, Sell / Commitment Reduction |
Time-weighted view of return using dated cash flows |
Exposure and profitability metrics
These additional metrics measure invested exposure and absolute profitability.
| Metric | Formula / Definition | Why It Matters |
|---|---|---|
| Multiple of Money | Actual Total Gain ÷ Funds Called | Reflects dollar-based return rather than ratios |
| Net Cash Exposure | Funds Called – Funds Returned – Income Distributed | Amount of capital still exposed to fund performance |
| Surplus | Current Value – Net Cash Exposure | Paper profit remaining after deducting unrecovered capital |
Actual (cash-based) metrics
These metrics provide a non-ratio, dollar-view of realized and unrealized gains.
| Metric | Formula / Definition |
|---|---|
| Actual Realised Gain | Funds Returned + Income Distributed |
| Actual Unrealised Gain | Current Value – Funds Called – Actual Realised Gain |
| Actual Total Gain | Actual Realised Gain + Actual Unrealised Gain |
Period difference metrics
These metrics show how performance has changed over a reporting period.
| Metric | Calculation |
|---|---|
| Difference in Realised | End of Period Realised – Start of Period Realised |
| Difference in Unrealised | End of Period Unrealised – Start of Period Unrealised |
| Difference in Total Gain | End of Period Total Gain – Start of Period Total Gain |
| Difference in IRR | End IRR – Start IRR (in percentage points) |
Currency treatment
All values are displayed in your selected reporting currency. Currency conversion rules:
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Historical transactions: Use FX rate on transaction date
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NAV, Commitment, and Current Value: Use current FX rate
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Impact: Currency movements may increase or decrease reported performance
Tips & best practices
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Capital Commitment and Commitment Reductions are excluded from IRR as they do not represent dated cash flows.
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Drawn % provides context for interpreting Fund Called vs Commitment.
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Use Net Cash Exposure to monitor unrecovered capital still at risk.
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Actual Total Gain and Surplus highlight realized vs paper profit positions.
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Review Difference metrics to assess performance evolution over time.
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Track FX-driven shifts, especially for non-USD fund positions.
End result recap
This guide provides a full explanation of how Asora calculates and displays private equity performance. By understanding each metric and its logic, users can assess fund performance across cash flows, NAV values, and absolute gains. Whether you're tracking realized returns, evaluating current exposure, or comparing fund performance over time, Asora equips you with transparent and detailed metrics for informed decision-making.