Which factor is NOT a primary driver of IRR in private equity?

In the context of private equity, the internal rate of return (IRR) is influenced primarily by factors that directly impact the investment's financial viability and cash flow generation. Projected financial performance, exit multiple, and financing structure are all crucial elements that play significant roles in determining the IRR.

Projected financial performance encompasses revenue growth, profitability, and cash flow generation, all of which are critical for assessing the potential returns of an investment. The exit multiple is another key determinant; it reflects how the investment is valued upon exit, directly affecting the returns realized by investors. The financing structure, which includes the way the investment is capitalized (e.g., the mix of equity and debt), also affects the overall risk and returns, therefore influencing the IRR.

Conversely, the marketing strategy, while important for driving sales and creating overall business value, is not a direct driver of IRR calculations. It may indirectly contribute to financial performance but does not significantly impact the IRR as the other factors do. Thus, it is not considered a primary driver of IRR in the context of private equity.