Returns Lab · Named benchmark method

Private Equity PME Workbench

Compare dated private-fund cash flows with a benchmark you select. The worksheet supports two named methods and requires the benchmark index level on every cash-flow date, so the comparison cannot hide its method or market path.

Interactive worksheet

Benchmark the same cash-flow dates, not headline returns

Enter contributions, distributions, terminal NAV, and one consistent total-return index series. Select the result you want to interpret.

Method in useUser-selected KS-PME or Direct Alpha
Calculation boundary

The worksheet supplies no benchmark data and makes no claim that a broad public index matches the fund's leverage, liquidity, risk, geography, sector, or currency exposure.

Swipe horizontally to edit every column

Dated private cash flows and benchmark index levels
DateCash-flow typeAmount ($M)Benchmark index
Kaplan-Schoar PME0.86x
KS-PME cross-check0.86x
Benchmark-adjusted calls$145.0M
Benchmark-adjusted value$124.6M

Net LP cash flows; Synthetic total-return index. The private value is below the selected benchmark on the Kaplan-Schoar basis.

Index levels must come from one consistent total-return series in the same currency convention. Kaplan-Schoar PME compares benchmark-adjusted value as a ratio. Direct Alpha applies XIRR to benchmark-adjusted private cash flows. Neither method independently adjusts for leverage, liquidity, risk, stale NAV, or benchmark selection.

The worksheet runs in your browser. Use synthetic or de-identified inputs; do not paste confidential deal, fund, employee, or lender information.

Method record

Kaplan-Schoar PME grows each contribution and distribution by the selected benchmark from its cash-flow date to the terminal date, then divides benchmark-adjusted distributions plus terminal NAV by benchmark-adjusted contributions. Direct Alpha applies XIRR to those benchmark-adjusted signed cash flows. A result is not portable without the cash-flow basis, benchmark name, index type, currency, terminal date, and NAV basis.

Primary method references: Kaplan and Schoar (2005) and Gredil, Griffiths, and Stucke on Direct Alpha.

Before comparing a result with a vendor benchmark, review Evidence Atlas EA-03. Database populations, update lags, classifications, and benchmark construction are not interchangeable.