Evaluate a fund's portfolio and present its metrics: six deals with cost and current value, two below cost and one at 5x. Compute gross multiple, loss ratio and concentration, and say what an LP would ask.

Gross MOIC is 1.80x on Rs 600 crore, of which 0.92x is realised (DPI) and 0.88x is held at the fund's marks (RVPI). Two of six deals, 25% of invested capital, are below cost, with Rs 80 crore of value lost, 13% of the fund. Dhruva Diagnostics is 46% of total value and 83% of the gain; without it the fund is 1.16x. The LP will ask exactly that, and then how the four unrealised marks were set.

Start by separating what has been banked from what is a mark. A family that sold one flat at a profit and owns three others at estate agents' estimates has two kinds of wealth, and an LP reads a fund the same way. Gross MOICMultiple on invested capital: total value, realised plus unrealised, divided by cost. Gross means before the fund manager fees and carried interest. is Rs 1,080 crore over Rs 600 crore, 1.80x; DPI, distributions over paid-in, is Rs 550 crore over Rs 600 crore, 0.92x; RVPI, residual value over paid-in, is Rs 530 crore over Rs 600 crore, 0.88x. DPI plus RVPI is the MOIC, which is the check. All of these are gross; the LP's net number after fees and carry is lower.

Two measures of loss, and the LP wants both. The loss ratioThe share of invested capital in deals that are worth less than cost. A second version measures the rupees actually lost as a share of the fund. by capital is Rs 150 crore of Rs 600 crore, 25%; the rupees lost are Rs 80 crore, 13% of the fund. Concentration is the harder conversation: Dhruva's Rs 400 crore of gain is 83% of the fund's Rs 480 crore, so the other five deals together made Rs 80 crore on Rs 500 crore, 1.16x. That is not unusual in a six-deal fund, and saying so is better than hiding it; what the LP wants to know is whether Dhruva was skill the team can repeat or a sector that re-rated.

Four questions, in roughly this order. One: what is the fund without Dhruva, and what did the team do there that it can do again? Two: how are the four marks set, and what would Keshav and Trishul fetch if sold today; a mark of 1.27x on Trishul is only as good as the comparable multiples behind it. Three: what happened at Mahira and Nirmal, and were the losses from the thesis being wrong or from the price paid. Four: what is the net number after fees and carry, and when does the rest of the money come back. The honest page shows all four before the LP asks, with the concentration and the loss ratio stated as plainly as the 1.80x.

The limit of the metrics is that none of them has a date. A 1.80x achieved in four years is a very different fund from one that took nine, and the IRR cannot be computed from this table at all without the dated cash flows. Say that, and ask for them, rather than present a multiple as if it were a return.