Free private markets document template

Private Equity Benchmarking Policy Template

Create an institutional LP private equity benchmarking policy covering TVPI, DPI, net IRR, PME, quartiles, peer groups, reporting and governance.

Policy purpose

This policy establishes consistent, decision-useful benchmarking standards for the private markets program.

Use vintage-year, strategy and geography matched pooled benchmarks; use public-market equivalent analysis for broad market context.

Net IRR, TVPI, DPI, RVPI, PME, loss ratio, distributions and NAV-weighted exposure.

Compare against relevant vintage, strategy, fund-size and geographic cohorts; avoid broad peer groups that mask underwriting differences.

Assess performance by maturity: early funds emphasize TVPI and NAV quality; mature funds emphasize DPI, net IRR and PME.

Review realized and unrealized track record, dispersion across funds, attribution, persistence and relative quartile position.

Assess program results against long-term return objective, public-market equivalent, diversification, liquidity and pacing outcomes.

Reconcile manager-reported cash flows and NAV, identify stale marks and document benchmark limitations.

Report benchmark results quarterly to staff and annually to the Investment Committee, with methodology and caveats.

Investment staff owns application; the Committee reviews methodology annually and approves material changes.

Document unavailable benchmarks, small-sample limitations and any alternate comparison selected for a specific fund.