Private Markets Unpacked: Evaluating private equity performance

Private equity performance is about more than headline returns. Evaluating net cash flows, NAV, and public market comparisons can help investors gain a complete picture of performance

• Private equity performance can be evaluated using multiple metrics rather than relying on headline returns alone, because each metric provides a different perspective on value creation, liquidity, timing, and risk

• IRR and MOIC are most effective when used together: IRR measures the impact of timing on returns, while MOIC reflects the total value generated. Comparing both helps investors distinguish between funds that create value quickly and those that generate stronger long-term outcomes

• Investors should assess risk and comparability alongside returns by examining leverage effects, loss ratios, and public market equivalents, which can help determine whether performance reflects genuine operational value creation, downside protection, and outperformance