For many investors one of the main attractions of private equity is its relative simplicity compared with other asset classes. In the words of one investor “buying a business and selling it for more money is in theory a far more straightforward proposition than some exotic derivatives contract”.

However, the ability to judge a manager's performance is far from simple. Managers across the primary and secondaries markets are able to make use of a variety of techniques - accounting and financial - in order to increase their funds' performances and show their track records in the best possible light.