Exposure Draft: IRR Reporting for closed-end funds: Providing transparency, comparability and relevance to Internal Rate of Returns (“IRR” or “IRRs”), gross of fees and promote, net of fees and promote

Comments due by November 8, 2019

IRR is perhaps the most widely accepted performance measure relied on for the strategic decision making for closed-end funds. Yet, there is a considerable degree of inconsistency on how internal rate of returns are being calculated, specifically when reported as gross and net of fees and promote. The NCREIF PREA Reporting Standards Council approved the formation of a task force that conducted extensive outreach, research and analysis of this complicated topic. This exposure draft and included recommendations are the culmination of that work.

The NCREIF PREA Reporting Standards Board and Council invite all interested parties to comment on the nine-question exposure draft. Feedback and response are critical to ensure that the Reporting Standards reflect industry best practices as well as meet the need for transparency, consistency and comparability that facilitate informed decision-making.

The comment period for the above referenced exposure draft concludes on November 8, 2019.