The $600M XYZ Fund has completed its 10-year life. Its annual investments, fees, distributions, and portfolio value are given in Exhibit 3-10.

(a) Compute the value multiple, realized value multiple, unrealized value multiple, and IRR for XYZ after every year of its life.
(b) Are these returns an example of the J-curve, or are they anexception?

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EXHIBIT 3-10 CASH FLOWS FOR THE XYZ FUND Year Year Year Year Year Year Year Year Year Year 1 2 34 5 6 789 10 50.0 100.0 100.0 150.0 100.0 0.0 0.0 0.0 0.0 0.0 Investments Portfolio value Carried interest 50.0 167.5 326.1 387.8 353.5 381.8 412.3 445.3 480.9 519.4 0.0 0.0 0.0 0.0 0.0 0.0 15.9 17.8 19.2 103.9 Distributions to LPs 0.0 0.0 150.0 200.0 70.7 76.4 66.6 71.2 76.9 415.5 0.0 0.0 150.0 350.0 420.7 497.1 563.6 634.9 711.8 1127.3 Cumulative distributions to LPs Port value after 50.0 167.5 176.1 187.8 282.8 305.4 329.8 356.2 384.7 0.O anana ment te 100 10.0 100 10o 100 100 100 100 10.0 10.0 capital returned