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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 $m Management fees will be per year on committed capital for all years.
Option A: the fund will charge carry with committed capital as the basis.
Option B: the fund would have carry on all investment capital.Suppose that total exit proceeds from all investments are $m at the end of the fund's life. How much carried interest would be earned under A and B
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