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A VC firm is considering two compensation structures. The fund is $ 1 0 0 m . Management fees will be 2 . 5 %

A VC firm is considering two compensation structures. The fund is $100m. Management fees will be 2.5% per year on committed capital for all 10 years.
1. Option A: the fund will charge 25% carry with committed capital as the basis.
2. Option B: the fund would have 20% carry on all investment capital.Suppose that total exit proceeds from all investments are $150m at the end of the fund's life. How much carried interest would be earned under A and B?

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