Consider the case of XYZ Partners from Example 3.3. Now, instead of using a GVM of 2.5

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Consider the case of XYZ Partners from Example 3.3. Now, instead of using a GVM of 2.5 (as in the example), assume that this GVM is unknown and equal to K.

(a) For any given K, solve for the carried interest, value multiple, and GP%.

(b) How large must K be for the value multiple to be greater than 3?

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Venture capital and the finance of innovation

ISBN: 978-0470454701

2nd Edition

Authors: Andrew Metrick

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Question Posted: Jun 23, 2012 05:11 AM

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Consider the case of XYZ Partners from Example 3.3. Now, instead of using a GVM of 2.5

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GVM K From Example 33 we know that Lifetime fees 20M and investment c...View the full answer

Venture capital and the finance of innovation

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