Top-quartile

In the top 25% of a specified comparison group, ranked by a stated metric at a stated measurement date. For private equity funds, comparisons normally use peer strategy and vintage year with a consistent gross or net basis. This is a ranking, not a 25% return.

Top-quartile in practice

Hypothetical: one manager reports a top-quartile ranking by net internal rate of return (IRR), while another reports one by distributions to paid-in capital (DPI). Both statements may be accurate for their benchmarks, but they do not answer the same question. Compare the metric, peer group, vintage, measurement date and gross or net basis before comparing the claims.

Source: Cambridge Associates: private investment benchmarks · Cambridge Associates: investment-level performance benchmarks.

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