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Abnormal CAIA Calculation for PE Carry?

Been away for a while due to intense deadlines with work. I wanted to discuss CAIA’s waterfall approach for calculating PE carry. The more I discuss this methodology with institutional investors and read through LPAs the more I find it to be very unrepresentative of how “the real world” actually works. It seems to calculate the preferred return based on a multiple after capital is returned, whereas every LPA I read through and every veteran investor I talk with states that it is an annually compounding IRR-based preferred return. Any insight as to where the CAIA are coming up with their methodology here?

Cheers

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