What is an IRR?



IRR or Internal rate of return is the discount rate that will equate future cash inflows to the initial cash outflow or the investment value. Let’s work with a case study.


Assuming a PE company invested £100m in a company which gave dividends of £5m a year for five years and was sold after for £200m


The IRR (r) is the discount rate which will equate £100m to all the cash inflows i.e. £5m a year for five years and £200m.


Year 0 Year 1 Year 2 Year 3 Year 4 Year 5

-£100 £5 £5 £5 £5 £205

(1+r)^1 (1+r)^2 (1+r)^3 (1+r)^4 (1+r)^5


The IRR in the above case is 19%



We have an 88% placement rate for our 4 to 8 weeks training programs conducted in 2017/18 with students going on to secure jobs at marquee investment banks such as Goldman Sachs, Credit Suisse, Morgan Stanley, Citi Bank and Deutsche Bank among others. Please send your CV to info@cityinvestmenttraining.com to check your eligibility for the course.

© City Investment Training 2020

  • YouTube - White Circle
  • Instagram - White Circle
  • White LinkedIn Icon