Track Record Attribution (Part 4): Construction Hints And Tips

This final article in our four-part series (part 1 (https://www.mjhudson.com/newsletter/track-record-attribution-part-1-designing-the-menu/), part 2 (https://www.mjhudson.com/newsletter/track-record-attribution-part-2/), part 3 (https://www.mjhudson.com/newsletter/track-record-attribution-part-3-who-ya-gonna-call/)) outlines a number of considerations for new managers to keep in mind when (re)constructing a track record. It is of most relevance for a newly-formed manager with an existing track record but without agreed attribution - and hence access to the necessary cash flow data - from prior employer(s).

1. Format. You are aiming to provide prospective investors with an Excel-based track record model. Ideally the track record and the performance numbers therein (gross multiple and IRR) should be calculated from actual cash flows, rather than being hard coded. A PDF summary of the track record may suffice in extremis (or for new managers that are heavily in demand),