2.3 (Hint) A VC firm is considering two different structures for its new $250M fund. Both structures would have management fees of 2 percent per year (on committed capital) for all 10 years. Under Structure I, the fund would receive an X percent carry with a basis of all committed capital. Under Structure II, the fund would receive a Y percent carry with a basis of all investment capital. For a given amount of (total) exit proceeds = $Z, solve for the amount of carried interest under both structures. Carried Interest Under Structure 1 = Carried Interest Under Structure 2 = Carried Interest Under Structure 2 = X%* (z - 250) Y%* (z - 250 - (250*2%*10) Y%* (z - 200) 2.3 (Hint) A VC firm is considering two different structures for its new $250M fund. Both structures would have management fees of 2 percent per year (on committed capital) for all 10 years. Under Structure I, the fund would receive an X percent carry with a basis of all committed capital. Under Structure II, the fund would receive a Y percent carry with a basis of all investment capital. For a given amount of (total) exit proceeds = $Z, solve for the amount of carried interest under both structures. Carried Interest Under Structure 1 = Carried Interest Under Structure 2 = Carried Interest Under Structure 2 = X%* (z - 250) Y%* (z - 250 - (250*2%*10) Y%* (z - 200)