Internal Rate of Return. I’m probably over simplifying, but it’s how investments report what their effective compound interest rate was based on the cashflow re

Internal Rate of Return. I’m probably over simplifying, but it’s how investments report what their effective compound interest rate was based on the cashflow returns. This post also talks about “Interim IRR” (I’ve also heard it called “paper IRR”), which a lot of funds report based on the current marked up valuation of the portfolio. It’s what the IRR would be if everything could be liquidated based on the current last/valuation. Which has never made any sense to me and seems like pure vanity if not actively disingenuous. You’re not liquid. You’ve not provided any cashflow returns. There is no IRR yet. But I guess people need a way to justify their paper performance.