An endowment invests $150,000,000 in WeGrow II, an early-stage venture fund with a 20%

incentive fee and a 5% preferred return [hurdle rate]. The fund invests in the following companies (for simplicity, ignore staged financing and management fees; assume instead that all investments occur at the end of their denoted year):

Start-up Name Investment (Year Invested) Harvested (Year Harvested)

SPE Incorporated $35,000,000 (2) $62,000,000 (7)

NiteID Corporation $20,000,000 (2) $300,000,000 (9)

D-Ton Incorporated $15,000,000 (2) $0 (8)

IKL Limited $20,000,000 (3) $100,000,000 (7)

H&L Innovations $25,000,000 (3) $125,000,000 (10)

SimLife Technologies $35,000,000 (4) $ 0 (9)

a. Construct a set of yearly cash flows to WeGrow II and to the endowment.

b. What is the IRR to the endowment, net of fees?

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