Question on pg 74-77 of the alternative asset book. How are they calculating gross and net irrs (what are the specific calculator steps)? I can’t get to the 16.1 and 11.3% IRR’s.
look at the cash flows definition on the bottom of the page look at the cash flows on the next page. you punch those cash flow numbers in - and you get your IRR.
I know the book says that, can u respond and say what are the specific cf’s and calc buttons to hit?
Please respond, I asked this question weeks ago and I still do not know how they even got the cashflows to calculate it
answered on another thread last night by me… here again for reference For the Net IRR - cash flows are net of fees and Carried Interest 2001 -50 (Called Down) 2002 -15 (Called Down) - 1 Mgmt Fees of 2001 -5 (Op Results of 2001) = -21 2003 -10 -1.3-15 = -26.3 2004 -25-1.5+25=-1.5 2005 -10 -2 +45 -3.84 (Carried Interest) = +29.16 2006 -5 -2.2 + 55 - 6.79 = 41.01 2007 105 (Op Results) -2.3 (Mgmt fees) -11.18 (Carrie Int) = 91.52 Use above - calculate IRR = 11.3% Gross IRR -> No fees, No Carried Interest 2001 -50 (Called Down) 2002 -15 (Called Down) -5 (Op Results of 2001) = -20 2003 -10 -15 = -25 2004 -25+25=0 2005 -10 +45 = +35 2006 -5 + 55 = 50 2007 105 (Op Results) Gross IRR=16.1% IRR calculated by entering all these using the Cash flows function.
cpk123 Wrote: ------------------------------------------------------- > answered on another thread last night by me… > > here again for reference > For the Net IRR - cash flows are net of fees and > Carried Interest > > 2001 -50 (Called Down) > 2002 -15 (Called Down) - 1 Mgmt Fees of 2001 -5 > (Op Results of 2001) = -21 > 2003 -10 -1.3-15 = -26.3 > 2004 -25-1.5+25=-1.5 > 2005 -10 -2 +45 -3.84 (Carried Interest) = +29.16 > > 2006 -5 -2.2 + 55 - 6.79 = 41.01 > 2007 105 (Op Results) -2.3 (Mgmt fees) -11.18 > (Carrie Int) = 91.52 > > Use above - calculate IRR = 11.3% > > Gross IRR -> No fees, No Carried Interest > 2001 -50 (Called Down) > 2002 -15 (Called Down) -5 (Op Results of 2001) = > -20 > 2003 -10 -15 = -25 > 2004 -25+25=0 > 2005 -10 +45 = +35 > 2006 -5 + 55 = 50 > 2007 105 (Op Results) > > Gross IRR=16.1% > > IRR calculated by entering all these using the > Cash flows function. So, in order to calculate IRR all you need is the capital called down and operating results?
I love when someone is in need of assistance, yet is too lazy to re-write the question…
In response to bpdulog… for Gross - Paydown + Operating Results are all that is needed. for Net -> need the Mgmt Fees + Carried Interest as well.
cpk123 Wrote: ------------------------------------------------------- > In response to bpdulog… > > for Gross - Paydown + Operating Results are all > that is needed. > > for Net -> need the Mgmt Fees + Carried Interest > as well. Thanks!