FundLedger Blog

When calculating the performance of a private equity fund, there are a number of tools available, which may yield varying results depending on the calculation methodology used.

We’ll explore a number of different methodologies available, their strengths and weaknesses, as well as tools available to calculate each type of measure.

In this article we will explore methodologies that are more suited for open-ended funds that experience periodic cash in- and outflows during the measurement period.

We will investigate the Time Weighted Rate of Return methodology and proceed to alternative methods including the Simple and Modified Dietz methods.