Many limited partners use IRR to measure the return performance of the funds they invest in, because limited partners usually invest in a variety of asset portfolios, from fixed income products, PE/VC funds, hedge funds to secondary market stocks. When they have a bunch of investment products, they need to find an indicator that can be compared horizontally to evaluate the performance of all portfolios. At this time, IRR is the best benchmark. -The following is not a quotation: Therefore, LP likes to use IRR to measure investment performance, and GP of PE/VC is an institution that manages assets for LP with LP's money. "What shareholders care about, we care about!" . Moreover, when LP and GP settle carry, most of them share the income on the basis of IRR, so IRR also determines the variable income of GP (to put it bluntly, performance bonus), and naturally IRR becomes the most important indicator and KPI for PE/VC to measure themselves.