lordrummxx1
New Member
- Joined
- Mar 28, 2019
- Messages
- 6
Hey All,
Quick question, I'm trying to calculate an ongoing IRR calc for a Private Equity Investment. For every period, I want to have an IRR calc up to that point. I need to somehow bring in the Fair Value of the fund on that date into the last cash flow of the IRR calc, otherwise the Cash In/Cash Out will be understated. See example, with the blue representing the cash flow in the IRR calc:
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I just made up the numbers, but I currently have it set up as summing the contributions with distributions, but I need to include the Fair Value of the fund in the last period for each time period. For example, on 9/30/2012, I would want my IRR formula to show my cash flows as (6,500,000) on 6/30/2012, and 8,100,000 on 9/30/2012.
Quick question, I'm trying to calculate an ongoing IRR calc for a Private Equity Investment. For every period, I want to have an IRR calc up to that point. I need to somehow bring in the Fair Value of the fund on that date into the last cash flow of the IRR calc, otherwise the Cash In/Cash Out will be understated. See example, with the blue representing the cash flow in the IRR calc:
| Date | 6/30/2012 | 9/30/2012 | 12/31/2012 |
| Contributions | (7,000,000) | 0 | (5,000,000) |
| Fair Value | 7,500,000 | 7,600,000 | 7,800,000 |
| Distributions | 500,000 | 500,000 | 500,000 |
| Net | (6,500,000) | 500,000 | 3,300,000 |
| IRR | 10% | 9% | 10% |
<tbody>
</tbody>
I just made up the numbers, but I currently have it set up as summing the contributions with distributions, but I need to include the Fair Value of the fund in the last period for each time period. For example, on 9/30/2012, I would want my IRR formula to show my cash flows as (6,500,000) on 6/30/2012, and 8,100,000 on 9/30/2012.
