A VC with $100 million committed capital is structured as 2% fees and 20% carry on the basis of committed capital. The first exit of a portfolio company with the VC’s investment of $10 million has happened with $50 million in the 5th year from the vintage year of the VC fund. How would this $50 million be divided between GPs and LPs in a deal-by-deal carry structure?

A VC with $100 million committed capital is structured as 2% fees and 20% carry on the basis of committed capital. The first exit of a portfolio company with the VC’s investment of $10 million has happened with $50 million in the 5th year from the vintage year of the VC fund. How would this $50 million be divided between GPs and LPs in a deal-by-deal carry structure?

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter12: Professional Venture Capital

Section: Chapter Questions

Problem 14DQ

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