ABCDEFGHIJKLMNOPQRSTUVWXYZAAABACAD
1
Incorrect Math (calculating IRR by mixing IRR's and percentages)
Correct Math (calculating IRR by laying out all money in and out, proper calculation of sponsor split and running XIRR function)
2
3
Gross IRR:10.0%Gross IRR:10.0%Investment:$100
4
Promote/profit split to sponsor (8% preferred return, return of capital, 80% investor/20% sponsor split):0.4%
Correct Net IRR:
4.9%Rough distributions %/year:9%
5
Mangement fee:2.0%
6
Incorrect NET IRR:7.6% DateDescriptionCapital callCapital calls (cumulative)Gross In/OutManagement feeGross after management feeGross after management fees (cumulative)Preferred return thresholdGross after mangament fees subject to sponsor promote/profit splitSponsor promote/profit split (20% to sponsor)Net distribution to investor
7
8
1/15/2020Capital call #15%5%-$5.00$0.50-$5.50-$5.50$8$0$0-$5.50
9
4/15/2020Distribution (none in dry period)5%$0.00$0.50-$0.50-$6.00$8$0$0-$0.50
10
4/15/2020Capital call #25%10%-$5.00$0.50-$5.50-$11.50$8$0$0-$5.50
11
7/15/2020Distribution (none in dry period)10%$0.00$0.50-$0.50-$12.00$8$0$0-$0.50
12
12/1/2020Capital call #35%15%-$5.00$0.50-$5.50-$17.50$8$0$0-$5.50
13
10/15/2020Distribution (none in dry period)15%$0.00$0.50-$0.50-$18.00$8$0$0-$0.50
14
1/15/2021Distribution (none in dry period)15%$0.00$0.50-$0.50-$18.50$8$0$0-$0.50
15
3/14/2021Capital call #410%25%-$10.00$0.50-$10.50-$29.00$8$0$0-$10.50
16
4/15/2021Distribution (none in dry period)25%$0.00$0.50-$0.50-$29.50$8$0$0-$0.50
17
7/15/2021Distribution (none in dry period)25%$0.00$0.50-$0.50-$30.00$8$0$0-$0.50
18
10/15/2021Distribution (none in dry period)25%$0.00$0.50-$0.50-$30.50$8$0$0-$0.50
19
1/15/2022Distribution (on % invested)25%$0.56$0.50$0.06-$30.44$8$0$0$0.06
20
4/15/2022Capital call #510%35%-$10.00$0.50-$10.50-$40.94$8$0$0-$10.50
21
4/15/2022Distribution (on % invested)35%$0.79$0.50$0.29-$40.65$8$0$0$0.29
22
7/15/2022Distribution (on % invested)35%$0.79$0.50$0.29-$40.36$8$0$0$0.29
23
10/15/2022Capital call #665%100%-$65.00$0.50-$65.50-$105.86$8$0$0-$65.50
24
10/15/2022Distribution100%$2.25$0.50$1.75-$104.11$8$0$0$1.75
25
1/15/2023Distribution100%$3.00$0.50$2.50-$101.61$8$0$0$2.50
26
4/15/2023Distribution100%$2.25$0.50$1.75-$99.86$8$0$0$1.75
27
7/15/2023Distribution100%$3.00$0.50$2.50-$97.36$8$0$0$2.50
28
10/15/2023Distribution100%$3.00$0.50$2.50-$94.86$8$0$0$2.50
29
1/15/2024Distribution100%$5.00$0.50$4.50-$90.36$8$0$0$4.50
30
4/15/2024Distribution100%$3.00$0.50$2.50-$87.86$8$0$0$2.50
31
7/15/2024Distribution100%$3.00$0.50$2.50-$85.36$8$0$0$2.50
32
10/15/2024Distribution100%$3.00$0.50$2.50-$82.86$8$0$0$2.50
33
1/15/2025Distribution100%$4.00$0.50$3.50-$79.36$8$0$0$3.50
34
4/15/2025Distribution100%$5.00$0.50$4.50-$74.86$8$0$0$4.50
35
7/15/2025Distribution100%$6.00$0.50$5.50-$69.36$8$0$0$5.50
36
10/15/2025Distribution100%$4.00$0.50$3.50-$65.86$8$0$0$3.50
37
1/15/2026Sell at end100%$87.50$0.50$87.00$21.14$8$13$3$84.37
38
39
Gross IRR:10.0%
40
Correct Net IRR:
4.9%
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100