My IRR had been climbing for all of 2023 and in Q1 of 2024 it went down significantly. Despite one company having a 2x markup in the quarter. There were no significant cash flows out, no new investments nor any large expenses.
IRR takes into account contributions and distributions at the time of their recording; regardless of cash flow. Also, it takes into account any accrued income or expenses at the time of recording. When larger expenses are accrued, it can drag down the IRR in the short term and should gradually fix itself over time.