Suppose that IFM Ventures, a venture capital firm, raised CHF 300 million of committed capital. Each year over the 10-year life of the fund, 2% of this committed capital will be used to pay IFM's management fee. As is typical in the venture capital industry, IFM Ventures will only invest CHF 240 million (committed capital less lifetime management fees). At the end of 10 years, the investments made by the fund are worth CHF 900 million. IFM Ventures also charges 20% carried interest on the profits of the fund (net of management fees). Assume that IFM Venture collects the CHF 300 million of committed capital and invests CHF 240 million of it immediately. Also assume that IFM collects all proceeds from its investments at the end of the ten year life.

1. What is the IRR on the investments made by IFM Ventures?
2. What is the IRR on the investment of a limited partner into IFM Ventures net of all management fees and expenses?