Does GIPs state that TWRR has to be used for all asset categories?
I believe that is the preferred method.
BTON04 Wrote: ------------------------------------------------------- > I believe that is the preferred method. preferred? its’ either require or recommended. i believe it’s required TWRR for all asset categories except for Private eq.
required
cfaboston28 Wrote: ------------------------------------------------------- > required not for Private Equity though!
If manager has significant discretion over the timing of cash flows, MWR MUST be used…ie private equity.
1morelevel Wrote: ------------------------------------------------------- > If manager has significant discretion over the > timing of cash flows, MWR MUST be used…ie > private equity. If I invest in a privae equity fund i.e. as a Limited Partner, I am not sure how I have discretion over timing of the cash flow, the General Partner does.
BTON04 Wrote: ------------------------------------------------------- > 1morelevel Wrote: > -------------------------------------------------- > ----- > > If manager has significant discretion over the > > timing of cash flows, MWR MUST be used…ie > > private equity. > > > If I invest in a privae equity fund i.e. as a > Limited Partner, I am not sure how I have > discretion over timing of the cash flow, the > General Partner does. And thats why he reports his returns as MWR
1morelevel, maybe it is late in the day, but my point is that only if I am the general partner, I have discretion as to the timing of the cash flows, the same is not the case when I am a limited partner. So if i do not have discretion in the timing of cash flows, MWR is not the preferred method. Unless your point is only from the perspective of the General Partner.
Yes only from GP perspective.
Thank you 1morelevel…
Just remember that PE is SI-IRR, that’s all we really need to know. The whole discussion about whether the manager has discretion over portfolio cash flows was really meant for traditional portfolios.