Dec 5, 2022 - 17 min
Thinking about investing in private equity? Here is why you should navigate the numbers carefully. "It's not just the eye-popping scale of these returns that captures the attention. It's their amazing "since inception" consistency. Not only do the firms generate stratospheric numbers — far higher than anything produced by the boring old stock market — but they can apparently do it year in, year out, with no decay in returns." Jonathan Ford, the Financial Times' City Editor, comments on the mysterious basis of internal rate of return, or IRR, metrics.