Invested Capital - Total Equity or PE's equity share?

We are trying to understand when building a baseline and trajectory with using “invested capital”.

Two questions

  1. Should a PE calculate this on the total equity capital at entry E.g. including LPs, loans etc, Or purely the PE firms equity capital at entry?

  2. For co-investment does one calculate the total value again, or only the PE’s own share?


For a GP, please refer to question #12 in the PE FAQ. For a LP (that is not managing the investment), it would consider the capital that it invested.

Thank you. Have read the FAQs.

Could you please confirm whether my understanding of q12 in FAQs

Had originally understood that invested capital was at entry year, but this line from the FAQs is saying the calculated value as of the base year (e.g. 2023) - "Invested capital is the net amount of capital invested in the portfolio company, as close as possible to the time when the coverage is calculated within the base year.

Is this correct, that one would need to estimate the value for all portfolio companies as 2023 (if this is the base year?)

It is meant to mean funds that have historically been invested in a company since investments can be made in a company after the entry year (i.e., follow-on investments).