How are unrealized gains reflected in the annual reports, and how do they impact LP distributions?
1 reply
Wednesday, April 09, 2025
All gains are governed by the valuation policy of a firm.
As a general rule, unrealized gains are reflected in standard TVPI, MOIC, and IRR calculations if they are through priced rounds. These are labelled as unrealized TVPI, etc.
If gains are through SAFE Caps, there is a metric called a Cap Adjusted Projection that factors the SAFE Caps into a return model.
As a general rule, unrealized gains are reflected in standard TVPI, MOIC, and IRR calculations if they are through priced rounds. These are labelled as unrealized TVPI, etc.
If gains are through SAFE Caps, there is a metric called a Cap Adjusted Projection that factors the SAFE Caps into a return model.
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