The world of private equity is certainly one that requires a definite level of expertise and knowledge, with negotiations between equity firms and potential investors often hinging upon what rate of return they can expect on their investment. To help with this, local development equity firm Phatisa have decided to release a new Internal Rate of Return (IRR) calculator app designed to create a greater level of transparency between firms and investors, as well as give those without any equity experience a better insight into how it works.

The Phatisa IRR calculator app is currently available for free download to both iOS and Android device users. The app itself features the aforementioned calculation mode, which allows users to set specific parameters to accurately determine a variety of return possibilities. According to the company, the system functions off similar types of tools and technologies that Phatisa uses in everyday negotiations and benchmark setting.

Complimenting the calculation function is a news feed dealing with the equity industry and how different funds are effecting African communities. There is also a real-time display of exchange rates for the majority of African nations, which updates every 15 minutes, as well as rates for specific agricultural commodities such as maize and soya.   

Phatisa's senior partner, Stuart Bradley, explains that "while the app will certainly not replace detailed financial modelling required for investment evaluation, it gives an immediate answer that can help investors early on in the decision-making process." He went on to add that “it could be used as a quick check during negotiations with potential investee companies; during internal deal team discussions; or while on the go.”

How well this app is received by the industry still remains to be seen, but it certainly serves up an interesting proposition for investment professionals looking to add a dynamic level of transparency to their work.

Phatisa IRR Calculator from Phatisa on Vimeo.