Which IRR is the real one?
Neither, and that is the point. One answers what return your investors experienced on the capital they actually parted with. The other answers what the portfolio produced independent of how it was financed. An LP comparing you to another manager needs the second; an LP computing their own realised return needs the first.
Do I have to report both?
For funds commencing operations on or after 1 January 2026 the ILPA Performance Template makes net IRR and TVPI on both bases the standard, with the gross equivalents optional. Separately, the marketing rule already requires any gross figure shown to a prospective investor to be accompanied by net, at equal prominence and on the same methodology.
Why does the multiple move the other way?
Because facility interest and unused-line fees are real money the fund pays. They enlarge paid-in capital without adding value, so the denominator of every multiple grows. In the worked example the facility improves the IRR by 421 basis points and worsens TVPI by 280 at the same reporting date.
What if we never recorded which calls used the line?
Then the without-facility figure for those calls is not derivable from the record, and the pack says so rather than quietly assuming a bridge period. Name the calls, name the share of invested cost, and give the route, which is the lender's drawdown statements. Two of seven calls in the example, 34.5 per cent of cost.
Does this replace our fund administrator?
No. It reconciles to the administrator and reports the differences rather than becoming a second set of books. It does not value positions either; it takes what your valuation process produces and makes each position's basis explicit, which a single fund-level basis hides.
What about the audit and the annual meeting?
The methodology note and per-position valuation basis are most of what an auditor asks for, and assembling them quarterly is what stops the request arriving cold. Pair it with an audit confirmation tracker for the confirmations, and the deck outline covers the meeting.
We are raising. Does this help?
The track record an LP interrogates is this data on a longer horizon, and inconsistency between what you reported quarterly and what appears in the deck is what diligence finds. A pitch deck analysis reads the deck the way an LP will, and a diligence response pack keeps every prospect's DDQ answers consistent with it.
Performance Metrics