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A VC firm is considering two different structures for its new $100M fund. Both structures would have management fees of 2.5 percent per year (on
A VC firm is considering two different structures for its new $100M fund. Both structures would have management fees of 2.5 percent per year (on committed capital) for all ten years. Under Structure I, the fund would receive a 25 percent carry with a basis of all committed capital. Under Structure II, the fund would receive a 20 percent carry with a basis of all investment capital. Total exit value from all investments reached $300M when the VC fund is liquidated. Solve for VM, GVM, GP% for each structure.
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