Calculation of Long Nickels (LN) PME and IRR Spread

The Long Nickels PME tells how an equivalent investment in the public market would have performed.
This then needs to be compared to the actual IRR of the fund.

PE Fund Comparable Index Theoretical IRR for

Period (end) Cashflows Index nos Performance Investment PME
0 -100 100 0 100 -100
1 -50 105 5.00% 155 -50
2 60 115 9.52% 109.76 60
3 10 117 1.74% 101.67 10
Valuation (4) 110 120 2.56% 104.28 104.28
IRR 6.43% PME 5.30%

Notes
1) PE Fund cash flows - negative means contribution, positive means withdrawal
2) Theoretical investment calcution - say for p3 - Investment 155 grwing at 9.52% minus withdrwal of 60
3) IRR SPREAD = PE Fund cash flow IRR - PME IRR = 1.13%
would have performed.

s withdrwal of 60