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Explain a private-capital performance record

A useful analyst explanation reconstructs the inputs and names the question each metric answers.

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Use an original interview prompt

The interviewer supplies commitment 200, paid-in 100, distributions 40 and residual 110. They ask whether the investor has received a 50% cash profit and whether the fund has earned 50% per year. The record supplies no transfer dates.

Reconstruct the amounts before answering

TVPI is 1.5× on the stated paid-in basis, comprising DPI 0.4× and RVPI 1.1×. Only the distribution component has been returned under the record; remaining value is residual. No annual rate can be obtained from the multiple alone.

Ask for the missing evidence

Original follow-up questions
QuestionReason
What date and value basis?Residual comparability
Which costs and adjustments?Consistent input definitions
What are the transfer dates?Investor rate calculation
What remains callable?Future funding question

Make the limits part of the reasoning

The aim is a precise explanation rather than a confident unsupported ranking. An analyst can demonstrate command of the record by distinguishing a computable ratio from a missing rate or liquidity conclusion. This is original practice, not a claim about a particular employer’s interview.

Further references