Gross vs Net IRR

This problem practices a core private equity concept that interviewers often use to test whether you understand how fund performance is measured from different perspectives. You need to know the difference between returns generated by the investments themselves and the returns that investors actually receive after fees and profit sharing, as well as why the timing and size of cash flows matter in IRR analysis. Interviewers ask this because it checks both technical knowledge and whether you can clearly distinguish fund level performance from LP level performance in an LBO or private equity context.