When reporting performance, the funds typically look at the below metrics:

MoM – represents the total value relative to the capital invested

Investment MoM – realised and unrealised value of a company, divided by the capital invested in the company.

Gross MoM - realised and unrealised value of the portfolio, divided by the capital invested in the portfolio

Net MoM – Gross MoM adjusted for the fund’s fees and profit sharing

IRR – represents the discount rate at which the present value of all the cash flows of an investment is zero.

The IRR is generally the preferred performance metric as it takes into account the time value of money

For example, even if the return on capital is 40%, the IRR may be 10% as it takes into account the period that the capital was locked

The IRR is not always straightforward to calculate