Return on investment (ROI) and internal rate of return (IRR) are two important metrics used in evaluating investments. However, each metric is calculated differently and tells a different story. ROI ...

Chris Gallant, CFA, is a senior manager of interest rate risk for ATB Financial with 10 years of experience in the financial markets. Suzanne is a content marketer, writer, and fact-checker. She holds ...

Discover how the Modified Dietz Method measures investment returns, factoring in cash flow timing and excluding skewing ...

IRR measures the rate needed to break even on an investment. Calculate IRR by setting NPV to zero and solving for the discount rate. Use Excel's IRR function by inputting initial cost and cash inflow.

When it comes to evaluating investment performance, investors and financial professionals rely on various metrics to gain insights into the effectiveness of their strategies. One such crucial measure ...

Measuring returns is essential for evaluating the success or failure of an investment program. At first glance, this seems like a straightforward exercise. However, return measurement becomes ...

Waterfalls in private equity and venture capital dictate how investment returns are distributed among stakeholders. These structures determine who gets paid, in what order, and under what conditions.

One of the most common misconceptions I see from new investors is assuming cash-on-cash return (CoC) and internal rate of return (IRR) are interchangeable. They’re not and understanding the difference ...

Carried Interest refers to the fund manager’s incentive interest in an alternative investment fund, typically contingent on meeting key performance benchmarks. When gifting a percentage of their carry ...

As we approach a cycle of interest rate cuts, some of the mispricing that resulted from the cycle of rate hikes is likely to be undone. We believe securities with high visibility and certainty of cash ...