What Performance Metrics are Available to GPs?

Metrics Available

The GP Performance page includes the following metrics, in addition to detailed data about each of your finalized investments. You can filter your metrics by specific funds and vintage years.

  • Net and Gross TVPI
  • Net and Gross IRR
  • Net and Gross DPI
  • Net and Gross RVPI
  • MOIC
  • Markups Over Baseline (Unique to AngelList)

 

Guidelines

Your GP Performance page includes a variety of performance metrics to help you understand how your portfolio is performing. When sharing metrics with LPs, you should always share the net value, since net values exclude paid fees and carry and are more representative of what the LPs will be receiving.

 

Metric Definitions

TVPI (Total Value to Paid-In Capital)

TVPI is used to calculate the total value—both realized profits and unrealized future profits—that a fund has produced for investors relative to the amount of money contributed. Learn more about TVPI in our Education Center.

  • Net TVPI - Total value net of paid fees and carry, divided by paid-in capital. This is the effective TVPI for LPs.
  • Gross TVPI - Total value inclusive of paid fees and carry, divided by paid-in capital (collected).

 

IRR (Internal Rate of Return)

IRR shows the annualized percent return an investor’s portfolio company or fund has earned (or expects to earn) over the life of an investment. Learn more about IRR in our Education Center.

  • Net IRR - Rate of return net of paid fees and carry, which sets your portfolio's net present value to zero and represents the annual growth that your portfolio is expected to generate.
  • Gross IRR - Rate of return inclusive of paid fees and carry, which sets your portfolio's net present value to zero and represents the annual growth that your portfolio is expected to generate.

 

DPI (Distributions to Paid-In Capital)

Total distributions paid out by the fund to the LPs, net paid fees and expenses, divided by paid-in capital (collected).

 

RVPI (Residual value to Paid-In Capital)

Estimated value of the investments remaining in the fund, divided by paid-in capital (collected).

 

MOIC (Multiple on Invested Capital)

Total value of investments divided by the total invested

 

Markups Over Baseline (MOB)

Markups Over Baseline is the rate at which a certain set of deals has been marked up beyond what we'd expect from a stage and time-matched set of deals on the AngelList Platform. This baseline is established using the thousands of deals that take place on the AngelList platform annually in order to determine the expected number of markups in a portfolio. In other words, it’s the level of outperformance of a portfolio: the rate above the baseline rate of markups 

Formula: (Actual Markups - Expected Markups) √ (# of investments considered)

 

MOB can be used to better understand how you're performing relative to other leads and has a much higher predictive validity that the deals you make in the future will also be marked up, compared to your IRR or TVPI. This is because MOB doesn’t measure the amount an investment is marked up—meaning it will not be skewed by large outliers the same way IRR and TVPI can be. A fund with a single 100x performer and 20 bad investments has a great IRR, TVPI, and fund percentile rank, but a bad markups over baseline score (i.e., the GP got lucky).

You can read more about how to evaluate whether a GP is lucky or skilled in our blog article.

 

Fund Percentile

You can calculate your Fund Percentile using our Fund Percentile Calculator. This is only relevant for sets of investments that have an effective duration of at least 1 year.

Formula: TVPI = (1+ IRR) ^ effective duration

 

Fund percentile rank allows us to make an apples-to-apples comparison between funds across vintage years using effective duration—which adapts to how quickly a fund invests its money.

So if, for example, you had a 2016 vintage fund and a 2017 vintage fund that both called the bulk of their capital in 2018, effective duration would make them more comparable because they’ve both been investing for roughly the same amount of time. Through effective duration we can compare funds of different years by percentile rank.

Early-stage investment performance can be disproportionately skewed by the single best investment a GP makes. A high fund percentile rank could mean the GP is skilled, but could also mean they simply got lucky with one or two investments and won’t be able to replicate this level of performance in the future. In other words, current percentile performance is only weakly correlated with future percentile performance. It’s not enough information on its own to determine if a GP is skilled, hence why we compare it to Markups Over Baseline. You can read more about how to evaluate whether a GP is lucky or skilled in our blog article.

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