How Simple are Holding Cash Flows?

The cash flows of private capital funds are known to be complex, requiring measures such as IRR, TVPI, and PME to be properly understood. In contrast, the individual holdings of funds are often thought to be relatively simple, consisting mostly of an investment followed by an eventual exit. In How Simple Are Holding Cash Flows? the Applied Research Team looks at the cash flows to and from funds’ portfolio companies and explores their surprising complexity.

We find that in most cases holding cash flows are quite complex, sometimes even resembling miniature funds in their own right. Click the button below to read the full paper.