Data sourced from Dakota Private Markets, the private fund performance platform powered by Dakota. Learn More | Request Access
Running a benchmark takes seconds. Knowing what the results actually say about your fund takes a little more.
A “second quartile” result can be great news or a warning sign depending on the vintage, the strategy, and how far the fund sits from the median. The numbers are only useful if you read them the way an allocator will.
In this article, we’ll break down each result the Peer Performance Calculator in Dakota Private Markets returns: rank, quartile, the Dakota Peer Groups median, and your gap to median. By the end, you’ll know how to interpret each one, how to read Net IRR and TVPI together, and what context to add before you share your results.
Rank: Where You Sit in the Peer Group
Rank is the simplest result. It tells you your fund’s position among every fund in its peer group, from the strongest performer down.
Always read rank alongside the size of the peer group. Ranking 3rd out of 12 and 3rd out of 60 are both strong results, but the second one is far harder to achieve and far more persuasive to an LP. If the peer group is small, consider whether a strategy-level or asset-class-level comparison gives you a more meaningful read.
Quartile: The Shorthand LPs Use
Quartiles split the peer group into four equal bands:
- First quartile (top quartile): The top 25% of funds.
- Second quartile: Above the median, but outside the top 25%.
- Third quartile: Below the median, but above the bottom 25%.
- Fourth quartile (bottom quartile): The bottom 25% of funds.
Quartile is the language of manager selection. Many allocators screen for top-quartile managers, and “top quartile” is one of the most powerful phrases in a fundraising conversation.
But quartile is a band, not a precise position. A fund just inside the top quartile and a fund at the very top of the peer group carry the same label. That’s why quartile should never be read on its own.
Median: What “Typical” Looks Like
The Dakota Peer Groups median is the midpoint of your peer group. Half the funds performed better, half performed worse.
Benchmarks use the median rather than the average for a reason. In private markets, a handful of outlier funds can pull an average sharply higher, especially in strategies like venture capital. The median gives you a cleaner picture of what a typical fund in your vintage and strategy actually delivered.
Gap to Median: How Far Above or Below You Are
Gap to median is the result that adds precision to your quartile. It shows exactly how far your fund sits from the peer group median, in IRR points or TVPI turns.
Illustrative example: Two funds in the same peer group both land in the second quartile. Fund A is 0.4 points above the median Net IRR. Fund B is 3.8 points above. Same quartile, very different stories. Fund B is likely close to the top-quartile cutoff, while Fund A is effectively a median performer. (These figures are hypothetical.)
Context matters here too. The same gap can mean different things in different strategies. A 2-point gap in a tightly clustered strategy may be significant, while the same gap in a widely dispersed strategy may barely register. It’s one reason private credit benchmarks look steadier than private equity’s and are easy to misread.
See your rank, quartile, and gap to median in seconds. The Peer Performance Calculator in Dakota Private Markets compares your Net IRR and TVPI against Dakota Peer Groups, with every peer fund visible. Request access.
Read Net IRR and TVPI Together
If you entered both metrics, compare the two results side by side. Where they disagree is often where the most useful insight sits.
|
Net IRR Result
|
TVPI Result
|
What It Usually Signals
|
|
Above median
|
Above median
|
Strong performance on both speed and total value.
|
|
Above median
|
Below median
|
Fast returns, often from early exits, with a smaller overall multiple.
|
|
Below median
|
Above median
|
Solid total value, but realized over a longer hold period.
|
|
Below median
|
Below median
|
Underperformance on both measures. Expect tougher questions.
|
Neither metric tells the full story alone. Net IRR rewards speed, while TVPI rewards total value created. Allocators will look at both.
Add Context Before You Share
Before your results go into a deck or LP update, check three things:
-
Fund age. Younger funds are still early in the J-curve, so their rankings can shift significantly as the portfolio matures.
-
Peer group size. Click “View the peer funds in this benchmark” to confirm the group is large enough and built the way you’d expect. Following best practices for creating private fund performance benchmarks keeps the comparison defensible.
-
As-of date. Make sure your fund’s numbers and the peer group cover the same period.
Read Your Results in Dakota Private Markets
Dakota Private Markets gives fund managers and investment teams a clear, transparent way to understand where a fund stands. The platform covers 18,000+ private funds and 159,000+ performance records across 7 asset classes, with Net IRR, TVPI, DPI, and RVPI on every fund record, all reviewed by Dakota’s research team before publication.
The Peer Performance Calculator delivers your rank, quartile, Dakota Peer Groups median, and gap to median instantly, along with the full list of peer funds behind every result. Export the peer list to Excel or print your results to PDF to share with your team and investors.
How to access it: Fund Performance & Comparisons → Peer Performance Calculator.
Know exactly what your numbers mean before an LP asks, request access to Dakota Private Markets.
