Quintile

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A quintile is one of five equal groups formed by ranking a data set from lowest to highest and splitting it into fifths, each representing 20 percent of the total.

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Venture returns are famously skewed, so funds and LPs often analyze fund performance by quintile: the top quintile of deals typically drives most of a fund’s total return, while the bottom quintiles return little or nothing.

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Why do investors talk about quintiles instead of averages?

Averages hide the power-law shape of venture outcomes. A quintile breakdown shows how concentrated returns actually are in a small number of top-performing investments.

How is a quintile different from a percentile?

A quintile is a fixed 20 percent slice of ranked data, while a percentile marks any single point in that ranking, for example the 90th percentile.

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