Total Return
Total return represents the overall return on an investment, encompassing both capital gains and income. For investors in the private markets, total return is a key metric for evaluating the performance of portfolio companies and funds. This comprehensive measure helps in making informed investment decisions and comparing the effectiveness of different strategies within the portfolio.
Key Takeaways
- Includes capital gains and income.
- Comprehensive measure of investment performance.
- Crucial for evaluating portfolio performance in VC and PE.
- Guides investment decisions and strategy comparisons.
