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Draw the two transaction relationships
In an original simplified case, an investor contributes 100 to a fund at year one. The fund previously invested 100 in a company at time zero using separately specified financing. The cash-flow start dates differ even though both amounts are 100.
Keep each schedule intact
One schedule measures transfers between investor and fund; the other measures transfers between fund and investment. Substituting the company acquisition date for an investor contribution date changes the investor’s rate calculation.
| Schedule | Initial event |
|---|---|
| Investor/fund | Investor contributes at year one |
| Fund/company | Fund invests at time zero |
Reconcile the missing movements
Financing, fees, retained cash and other transactions can connect the schedules. Matching their terminal proceeds does not prove they have identical gains, timing or cost treatment. The example supplies only the distinction, not a complete financing model.
Avoid using one rate as a synonym for another
Name the cash-flow boundary when presenting a performance number. The same fund can support several defined measurement views. A comparison needs matched records rather than an unqualified gross label.