The j-curve illustrates the internal rate of return (IRR) of a fund (or an investment) over time. It is typical in a private equity fund that during its first one or two years, the fund will show a negative return. This is due to the impact of the start-up costs. The fund’s returns will start to rise as soon as the first realisations are made. After approximately three to six years, the fund’s interim IRR will approach its final IRR.