The Net Internal Rate Of Return - Net IRR

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DEFINITION

A measure of a portfolio or fund's performance that is equal to the internal rate of return (IRR) after management fees and carried interest have been accounted for. It is a capital budgeting and portfolio management term.

INVESTOPEDIA EXPLAINS

The IRR is a discount rate where the present value of future cash flows of an investment is equal to the cost of the investment. The net IRR is a modified IRR value that has taken into consideration management fees and any carried interest.


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