I'm curious if anyone can walk through the calculations on IRR and CoC when an annualized pref rate is part of the deal.

On a standard deal is the CoC usually the annualized pref amount so it's counted as just cash flow and not a return on capital?

When I'm looking at various deals across platform and even deals on the SAME platform seems these can be calculated quite differently.

For instance since IRR is calculated based on the capital invested if a cashflow shows that in a particular year they estimate that they will be ABOVE the pref and return some of the capital then the IRR in the subsequent year is likely higher since now the capital invested is lower but the return is the same thus boosts overall IRR for the deal.

For this reason, it seems referring to the multiple as an additional point is helpful as at the end of the day it tells me how much real money is coming back to me.

I find the calculations non-consistent especially on fund deals, where they can be open ended dates with a wide range of hold periods so you can really cherry pick your numbers to make the IRR and multiples look good.

Any tips? Thanks!