GPMS
Making Sense of Private Equity Benchmarks: Useful tools, not absolute measures
Benchmarking in private equity is both necessary and nuanced. For investors, consultants, and fund-of-funds managers, understanding how capital has performed—relative to both peers and public markets—is essential. But unlike in listed equities, where standardized indices offer readily investable benchmarks, private equity presents a more complex landscape. Metrics such as DPI (Distributions to Paid-In), TVPI (Total Value to Paid-In), and IRR (Internal Rate of Return) are useful, but interpreting them correctly requires context, care, and experience.
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