Performance Metrics
What is Track Record?
A fund manager's track record is their history of realized investment performance across previous funds. It is the single most important factor LPs evaluate when deciding whether to commit to a new fund.
Track record encompasses both quantitative performance (IRR, TVPI, DPI, MOIC by vintage) and qualitative context (sector consistency, portfolio construction, management team continuity). LPs verify track records through audited fund financials and reference calls with portfolio company CEOs and other LPs.
For emerging managers raising Fund I, the lack of a pooled fund track record is the central challenge. Individual deal records, prior fund experience at other firms, and portfolio company references become the proxy for track record.