Key Approaches:

1) Internal Rate of Return (IRR): Measures the annualized return on invested capital, factoring in cash flows and the current value of unrealized investments.

2) Value Multiples: Realization ratios or investment multiples that compare the total distributions to the original invested capital.

3) Gross Value Multiple (GVM): Shows the fund’s raw investment returns before fees and carried interest, offering insight into the fund manager’s performance.

4) Public Market Equivalent (PME): Compares the fund’s returns to those of a benchmark public market index, highlighting the fund’s performance relative to broader market trends.