In private equity and venture capital , understanding performance metrics is crucial for making informed investment decisions. Two of the most important metrics are Distributed to Paid-In (DPI) and Internal Rate of Return (IRR). This article is about these metrics, explaining what they are, how they're calculated, and why they matter to investors . Distributed to Paid-In (DPI) What is DPI? DPI, or Distributed to Paid-In, is a cash-on-cash return multiple that measures the am

Recency bias is a cognitive phenomenon that can significantly impact investment decisions. This bias leads individuals to place...

Factor investing , the practice of targeting specific market factors or characteristics to generate excess returns, has been a popular...

In the rapidly evolving world of technology and artificial intelligence, investors must be aware of potential pitfalls that can affect...

In venture capital and private equity , the relationship between Limited Partners (LPs) and General Partners (GPs) is crucial. One of the most critical aspects of this relationship is understanding how fund size impacts investment strategy and expected returns . This article looks into the often-cited principle that " fund size determines strategy " and introduces a simple yet powerful heuristic called the "Rule of 30" to help investors gauge the necessary exit values for

For investors, understanding a company's position on the explore-exploit continuum is crucial for making informed investment decisions....

The Red Car Theory, also known as the Baader-Meinhof Phenomenon or frequency illusion, is a cognitive bias that can significantly impact...

Groupthink is a psychological phenomenon that occurs when a group of individuals reaches a consensus without critical reasoning or...