Internal Rate of Return (IRR)

What Is a Good IRR for 5 Years?

Maria Cristina Dela Cruz May 30, 2025 Comments

When evaluating investment performance, many ask, what is a good IRR for 5 years? The answer varies by industry, but in private equity, a levered IRR of around 20% is typically considered solid, reflecting healthy returns with manageable risk. Venture capital, on the other hand, demands higher thresholds due to the greater risk and uncertainty involved—here, investors often target IRRs of 30% or more. These benchmarks serve as guiding stars for assessing whether a 5-year investment has truly delivered.