CAIA: Private capital

Explanations, applications and practice for private capital.

• Reconcile three private-capital multiples

  Connect DPI, RVPI and TVPI to the original amounts.

  Worked examples
• 

  Private-multiple basis and reconciliation log

  Record compatible totals and their definitions before calculating ratios.

  Templates

• Define a compatible private-performance basis

  Match the input populations before comparing fund multiples.

  Lessons

• Record new capital without inventing a gain

  Trace a contribution that initially remains as fund cash.

  Worked examples

• Using total private value as cash received

  Inspect how much of a multiple’s numerator remains residual.

  Common mistakes

• Committed capital and paid-in capital

  Distinguish a funding obligation from contributions already recorded.

  Concepts

• Same TVPI, different distributed and residual components

  Compare how total value is composed before interpreting an equal multiple.

  Comparisons

• Explain a private-capital performance record

  Practice an analyst explanation that distinguishes value, timing and cash.

  Careers

• Locate a peak shortfall before a distribution

  Compare two event orders with the same terminal cash total.

  Worked examples

• Plan capital-call liquidity with an explicit schedule

  Track dated calls and receipts before assuming a terminal surplus is enough.

  Lessons

• Map private-capital transactions before performance

  Separate contributions, distributions and reporting-date value in one original record.

  Lessons

• Equally averaging private-fund multiples

  Use the amounts that the pooled ratio is supposed to summarize.

  Common mistakes

• Use distribution data when residual value is unknown

  Report the computable component without inventing a complete total-value ratio.

  Worked examples

• DPI, RVPI and TVPI on one paid-in base

  Reconcile distributed and remaining value using compatible totals.

  Formulas

• Reconcile residual-value movements

  Build a value bridge separating capital, payouts and valuation change.

  Lessons

• Netting distributions out of a paid-in denominator

  Check whether a shortcut changes the selected cumulative base.

  Common mistakes

• Pool two compatible private-fund records

  Sum paid-in and value components before dividing.

  Worked examples

• Aggregate private multiples with paid-in weights

  Derive a pooled ratio from compatible component amounts.

  Formulas

• Private-capital multiple bases and components

  Check denominator choice, value components and pooled weights.

  Practice

• Private-capital value and liquidity records

  Check contributions, missing NAV and event-order funding needs.

  Practice

• Private multiples and annualized money-weighted return

  Match the measure to an amount summary or a dated cash-flow rate.

  Comparisons

• Recallable distributions and the selected reporting method

  Keep recallable treatment explicit before entering cumulative amounts.

  Concepts

• Residual value is not a cash distribution

  Separate remaining estimated value from capital already returned.

  Concepts

• Private-capital measurement reconciliation checklist

  Review the record before interpreting a fund multiple or rate.

  Revision

• Inspect residual sensitivity in a total-value multiple

  Hold paid-in and distributions fixed while varying the supplied residual estimate.

  Worked examples

• Private-capital measurement learning sequence

  Build from transaction records to multiples, timing and liquidity.

  Study plans

• Fund-to-investor and fund-to-investment records

  Distinguish the transaction boundary before comparing performance.

  Concepts

• Compare one terminal multiple at two holding periods

  Isolate the time dimension omitted by a value multiple.

  Worked examples

• Private-multiple input scope

  Check the data definitions and interpret zero-value outputs correctly.

  Tool guides
• 

  Private-capital multiples calculator

  Calculate compatible DPI, RVPI and TVPI with explicit input boundaries.

  Tools
• 

  Private-capital transaction record

  Keep dated investor transfers and reporting values in an editable log.

  Templates

• Move value from residual to distributions

  Inspect a realization that changes composition without changing total value.

  Worked examples

• Trace a residual write-down through private multiples

  Hold paid-in and past distributions fixed while changing the remaining mark.

  Worked examples

• Trace a commitment-denominator substitution

  Calculate the result before and after changing the ratio’s base.

  Worked examples