How an Investment’s Internal Rate of Return (IRR) Can Be Manipulated

How an Investment's Internal Rate of Return (IRR) Can Be Manipulated

When soliciting capital from potential investors, commercial real estate transaction sponsors—such as private equity firms and fund managers—like to advertise their success in previous deals, along with the potential returns for the one for which they’re seeking capital. One of the ways they do this is by stating a targeted internal rate of return (IRR). […]

how an investments internal rate of return irr can be manipulated
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