The fees that the VC fund collect reduce the amount of capital that can be invested in companies.

True

False

invested by LP return multiple carry earned by General Partner capital distributed to LP management fees over ten years capital invested in companies expected complete write-offs capital earned on all investments capital earned on complete write-Offs capital earned on sideways deals capital earned on good deals multiple required on good deals multiple earned on lost deals multiple earned on sideways deals average of multiple returned invested capial earned 310 100 fail 300 sideways capital returned 20 350 50 20% of gain 20% of 250 (350-100) overall LP 11.61% good investments IR 22.72% time time 100 otal loss percentage 25% 0 4 0 invested in lost deals invested in sidewavs deals 0 20 0 invested in good deals 10 10 310 310 7.7500 4.38