Annual Percentage Return

An annual percentage rate (APR) is the yearly rate charged for borrowing or amount that is grossed through an investment venture, and is expressed as a percentage, thus denoting the actual annual cost of funds over the term of a loan.

The analysis of a financial tool’s APR is essential before any contract is signed. This is because loans or credit agreements can vary in terms of interest-rate structure, transaction fees, late consequences, and other factors. Therefore, an accurate APR evaluation helps in understanding the average rate charged by a lender when compared to other lenders in the market. An APR comprises any fees or added costs associated with the transaction but does not yield compounding into account. Moreover, it may not replicate the definite cost of borrowing as certain costs are involved or omitted.

This help page and the information contained herein is provided for informational and discussion purposes only and is not intended to be a recommendation for any investment or other advice of any kind, and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction.

Investing in venture capital funds is inherently risky and illiquid. It involves a high degree of risk and is suitable only for sophisticated and qualified investors.