Question: AVC with $100 million committed capital is structured as 2% fees and 20% carry based on committed capital. The first exit of a portfolio company
AVC with $100 million committed capital is structured as 2% fees and 20% carry based on committed capital. The first exit of a portfolio company with the VC's investment of $10 million has happened with $50 million in the 5th year from the vintage year of the VC fund. How would this $50 million be divided between GPs and LPs in a deal-by-deal carry structure? GPS'share = $0, LPs share = $50 O GPs' share - $50, LPs share - $0 O GPs' share - $42.5, LPs share - $7.5 O GPs' share - $7.5, LPs share - $42.5 AVC with $100 million committed capital is structured as 2% fees and 20% carry based on committed capital. The first exit of a portfolio company with the VC's investment of $10 million has happened with $50 million in the 5th year from the vintage year of the VC fund. How would this $50 million be divided between GPs and LPs in a deal-by-deal carry structure? GPS'share = $0, LPs share = $50 O GPs' share - $50, LPs share - $0 O GPs' share - $42.5, LPs share - $7.5 O GPs' share - $7.5, LPs share - $42.5
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