The Index Comparison Method (ICM) is a well-known approach for measuring a Private Equity Investment’s (PEI) performance. It is based on the construction of a benchmark portfolio that, each period, earns the index return. This generates a time series of interim net asset values that leads to a terminal NAV, from which an Internal Rate of Return is computed.

Introducing Aggregate Return on Investment as a Solution  to the Contradiction Between Some PME Metrics and IRR