Question
Your seed fund is writing a memo to your LPs (who are a combined group of angels, high net-worth individuals and family offices) all of
Your seed fund is writing a memo to your LPs (who are a combined group of angels, high net-worth individuals and family offices) all of whom are accredited investors. After doing Scorecard method due diligence with your analysts and associates on 40 potential investments, you write checks to 5 startups as the general partner. Invested capital I = {0.25, 0.75, 1.5, 1.25, 0.5} MM for F To your Fund's Limited Partners and investors, you showcase a projected DPI ratio based on your analyses of likely (projected) exit scenarios for the portfolio and exit multipliers for fund's sector: E_proj = {BH, GS, BH, GS, L} where the Exit multiplier per scenario {L = 0; B = 1; BH = 3; HR = 8; GS = 10} But in the fund's terminal year, your portfolio exits in the following outcomes E_act = {B, L, B, L, BH}
Calculate the DPI actual and projected and the differential
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