The Tyranny of IRR
指出私募股权行业广泛使用的自成立以来内部收益率（si-IRR）并不能真实反映投资者财富增长，其误用导致人们高估私募股权表现，建议监管机构禁止或重新命名该指标。
The since-inception internal rate of return (si-IRR) is widely reported by the private equity (PE) industry and interpreted as a meaningful rate of return. Si-IRR does not, however, represent the actual rate at which investor wealth grows over time. Its misuse may have contributed to the widespread belief that private equity significantly outperforms other asset classes, thereby fueling the dramatic rise in capital allocated to PE funds and their increasing presence in retail portfolios. A prominent example is the Yale Model, which advocates heavy allocations to private equity based largely on their reported si-IRR. To counter these misconceptions, regulators and standard-setters should consider prohibiting the use of si-IRRs, mandating the use of horizon IRRs under clearly defined conditions, and renaming si-IRR metrics to avoid the misleading term <italic>rate of return</italic> (e.g., using <italic>internal discount rate</italic> instead). Ultimately, although the net present value of an illiquid asset is conceptually sound, a rate of return is not.