Pooled Internal Rate Of Return - PIRR

Filed Under: ,
Dictionary Says

Definition of 'Pooled Internal Rate Of Return - PIRR'


A method of calculating the overall internal rate of return (IRR) of a portfolio of several projects by combining their individual cashflows. The overall IRR of the portfolio is then calculated from this pooled cash flow.
Investopedia Says

Investopedia explains 'Pooled Internal Rate Of Return - PIRR'


The pooled IRR concept can be applied, for example, in the case of a private equity group that has several funds. The pooled IRR can establish the overall IRR for the private equity group, and is better suited for this purpose than say average IRR of the funds, which may not give an accurate picture of overall performance.

comments powered by Disqus
Hot Definitions
  1. Securitization

    The process through which an issuer creates a financial instrument by combining other financial assets and then marketing different tiers of the repackaged instruments to investors.
  2. Economic Forecasting

    The process of attempting to predict the future condition of the economy. This involves the use of statistical models utilizing variables sometimes called indicators.
  3. Chicago Mercantile Exchange - CME

    The world's second-largest exchange for futures and options on futures and the largest in the U.S. Trading involves mostly futures on interest rates, currency, equities, stock indices and agricultural products.
  4. Private Equity

    Equity capital that is not quoted on a public exchange. Private equity consists of investors and funds that make investments directly into private companies or conduct buyouts of public companies that result in a delisting of public equity.
  5. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
  6. Valuation

    The process of determining the current worth of an asset or company. There are many techniques that can be used to determine value, some are subjective and others are objective.
Trading Center