Consider the representative investment in the venture capital fund shown in the worksheet VC Fund I in
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Question:
- Consider the representative investment in the venture capital fund shown in the worksheet "VC Fund I" in the student spreadsheet file. Assume that the FoF or Investure commits $7.5 million to VC Fund I.
- Estimate the returns to a limited partner that invests in VC Fund I through an FoF with the following terms: The FoF has a management fee of 1.5%, carried interest of 10%, and a preferred rate of 8% per annum, compounded annually.
- Estimate the returns to a limited partner that invests in VC Fund I through Investure. Investure has a management fee of 0.4%, carried interest of 3%, and a preferred rate of 10%. Profits above 20% are not subject to carried interest.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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