EBV invested a $5M Series A investment in Newco. EBV structured the investment as 6M shares of convertible preferred stock. One year later. Talltree invested a $10M Series B investment in Newco. Talltree structured the investment as 8M shares of convertible preferred stock. It is now one year later. Owl is considering a $30M Series C investment in Newco. Owl proposes to structure the investment as 12M shares of convertible preferred stock. The employees of Newco have claims on 10M shares of common stock, and the previous venture investors hold 6M shares of Series A convertible preferred (EBV) and 8M shares of Series B Convertible Preferred (Talltree). Thus, following the Series C investment, Newco will have 10M common shares outstanding and would have 36M shares outstanding on conversion of the CP. Owl estimates a 50 percent probability for a successful exit, with an expected exit time in three years, and an exit valuation of $500M. The $1,000M Owl fund has annual fees of 2 percent for each of its 10 years of life and earns 25 percent carried interest on all profits. Expected GVM is 3. LPs required rate of return on the investment in Owl venture capital fund is 15%. What is your investment recommendation for Owl? How much is the Target return Target multiple GP cost Partial valuation LP cost LP valuation