VC Fund Modelling
Budget: ₹600 – ₹1,500 INR
Prepare a fund waterfall model considering the following inputs -
Fund Size - $100M
GP contribution - $2M
1st Close LP commitment - $58M, Date
2nd Close LP commitment - $40M (1.5 years post 1st close)
2nd Close investors are required to make payments for equalization of both capital and fees. They are also required to compensate the existing LPs with 10% annualized interest
Drawdown 1 - $30M (T=0), Drawdown 2 - $30M (T=1.5 years), Drawdown 3 - $30M (T= 2 years)
Investment period - 3 years, Harvest period - 3 years, Fund life - 10 years
Management Fee - 2% (across fund life), Carry - 20%, Other operational expenses $150K per year
Hurdle rate - 8%, 100% Catch-up for GP
Can consider three distributions (50%, 30%, 20% after 6,8,10 years respectively after launch)
You are also required to calculate the MOIC and IRR for the GP, 1st close LP and 2nd Close LPs.
Kindly make the model as flexible as possible and make necessary assumptions wherever necessary.
Please prepare the project in excel showing all necessary formulas.
Fund Size - $100M
GP contribution - $2M
1st Close LP commitment - $58M, Date
2nd Close LP commitment - $40M (1.5 years post 1st close)
2nd Close investors are required to make payments for equalization of both capital and fees. They are also required to compensate the existing LPs with 10% annualized interest
Drawdown 1 - $30M (T=0), Drawdown 2 - $30M (T=1.5 years), Drawdown 3 - $30M (T= 2 years)
Investment period - 3 years, Harvest period - 3 years, Fund life - 10 years
Management Fee - 2% (across fund life), Carry - 20%, Other operational expenses $150K per year
Hurdle rate - 8%, 100% Catch-up for GP
Can consider three distributions (50%, 30%, 20% after 6,8,10 years respectively after launch)
You are also required to calculate the MOIC and IRR for the GP, 1st close LP and 2nd Close LPs.
Kindly make the model as flexible as possible and make necessary assumptions wherever necessary.
Please prepare the project in excel showing all necessary formulas.