Dollar-weighted (returns)

Dollar-weighted (returns) is a term used to refer to the calculation of the IRR of a series of fund cashflows, i. e., the compound return over time. As a classic measure of private equity returns, it takes into account the timing and size of the cashflow rather than the investment account's performance over a period of time. The operative word is "money" as compared to "time" in time-weighted returns.

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