This tracks the total amount of capital that is valued or realized below cost (below 1.0x) in a fund, over total invested capital. A loss ratio is one of the metrics that allows investors to analyse the quantum of losses in prior funds. In buyout funds, a loss ratio of less than 15% (i.e., 15% of invested capital is realized or held below cost) is considered preferable. In venture funds, a loss ratio of less than 30% is considered preferable; in distressed debt funds, a loss ratio of less than 10% is considered preferable and in direct lending funds, a loss ratio of less than 5% is considered preferable.