Quick LP Calculator
Private Market Premium Calculator
Compare an expected private-markets return with the allocator’s required return or policy benchmark.
If private markets are expected to return 14% against a 10% hurdle, what is the expected premium?
Results
Return hurdle at a glance
Illustrative estimate based on the assumptions shown.
How it is calculated
Return premium = expected private-markets return − required return
Differences between return rates are expressed in percentage points. Expected returns are uncertain and illustrative.
What this tells you
Read the result in context
The tool frames private-markets return as an allocator hurdle rather than an automatic premium over public markets. The expected return should reflect fees, risk, liquidity and the selected benchmark.
Frequently asked questions
Why use percentage points?
Subtracting two rates produces a percentage-point difference, not a percent change.
What is the relative premium?
It expresses the percentage-point difference relative to the absolute benchmark rate.
Is the expected return a forecast?
No. It is a user-supplied assumption for hurdle analysis.