Question: A VC firm is considering 2 different structures for its new $250M fund. Both structures would have management fees of 2% per year on committed

A VC firm is considering 2 different structures for its new $250M fund. Both structures would have

management fees of 2% per year on committed capital for all 10 years. Under Structure (I), the fund would

receive x% of carry interest on a basis of all committed capital. Under Structure (II), the fund would receive

y% carry interest with a basis of all investment capital. If both structures are to generate the same total exit

proceeds of $z, what the carry interest rates in each structure would be?

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