In private equity, the phrase “top quartile” has become so commonplace it has almost lost its meaning. Two years ago, Erik Hirsch, chief investment officer at global investor Hamilton Lane, remarked that he would start a party the moment a firm admitted it was not top quartile, such is the prevalence of the phrase in day-to-day fundraising.

Having a top-quartile status is normally based on a calculation of a firm's internal rate of return - a measurement showing the amount of cash made per year on an investment, which essentially measures the speed of capital returned to investors.