Charge management fees or carried interest

Assignment Help Financial Management
Reference no: EM131604391

XYZ partners is raising their first fund, XYZ Partners Fund I, with $100M in committed capital, annual management fees of 2 percent, carried interest of 20 percent, and a carried interest basis of committed capital. The four individuals on the XYZ team have previously managed the captive VC portfolio for the Goldenbucks family. During the 10 years of Management the Goldenbucks' VC portfolio, the partners did not charge management fees or carried interest, and they achieved a GVM of 3.5.

-Suppose that XYZ Fund I earns the same GVM as the partners earned for Goldenbucks. What would be the value multiple be for the fund?

-What would be the GP% of the fund?

Reference no: EM131604391

Questions Cloud

Internal rate of return when evaluating projects : Tall Trees, Inc. is using the modified internal rate of return (MIRR) when evaluating projects.
Determine the margin of safety ratio for current operations : Determine the margin of safety ratio for current operations and after Mary's changes are introduced (Round to nearest full percent).
Find the profit functions for the given statements : An online seller of T-shirts pays $500 to start up the website and $6 per T-shirt, then sells the T-shirts for $12 each.
How parameters a and b affect equilibrium size of molecule : The Lennard-Jones model predicts the potential energy V (r) of a two-atom molecule as a function of the distance r between the atoms.
Charge management fees or carried interest : the partners did not charge management fees or carried interest, and they achieved a GVM of 3.5.
Compute the annual depreciation for the first year : AC102 FINANCIAL ACCOUNTING 2 - COMPREHENSIVE FINAL. Compute the annual depreciation for the first year under the units-of-activity method
Examine main reasons service companies are more sensitive : Examine the main reasons service companies are more sensitive to labor and price variances, as compared to material price variances.
Find internal rate of return for series of future cash flows : Find the internal rate of return (IRR) for the following series of future cash flows.
What are the zeros and asymptotes of f : For positive A, B, the force between two atoms is a function of the distance, r, between them: f(r) = (-A/r2) + ( B/r3) r > 0.

Reviews

Write a Review

Financial Management Questions & Answers

  What does camels stand for

Regulators use the CAMELS system to analyze bank risk. What does CAMELS stand for and what financial ratios might best capture each factor?

  Relation between corporate bonds expected return

What is the relation between a corporate bond’s expected return and the yield to maturity? In your answer, define default risk and explain how these rates incorporate default risk.

  Use of insured corporate cross-purchase buy-sell agreement

All the following statements concerning the use of an insured corporate cross-purchase buy-sell agreement are correct EXCEPT: All the following provisions are usually included in an insured stock cross-purchase buy-sell agreement EXCEPT: D and E, a m..

  What was the firms cash flow from assets

The December 31, 2015, balance sheet of Schism, Inc., showed long-term debt of $1,460,000, $152,000 in the common stock account, and $2,770,000 in the additional paid-in surplus account. The December 31, 2016, balance sheet showed long-term debt of $..

  What is the hospital admission rate for that year

Marketing Health Services In 2012, Anytown USA recorded 1,100 hospital admissions for its population of 10,000 residents. What is the hospital admission rate for that year (per 1,000 residents)? A. 5/1000 B. 8/1000 C. 11/1,000 D. 15/1000

  What is his profit if he holds his position until maturity

What is his profit if he holds his position until maturity of the option and the stock price is $45 then?

  Issue common stock to public

Messman manufacturing will issue common stock to public for $30. The expected dividend and the growth in dividends are $3.00 per share and 5%, respectively. If the flotation cost is 10% of issue's gross proceeds, what is the cost of external equity, ..

  Arithmetic versus geometric returns

Risk and Return We have seen that over long periods stock investments have tended to substantially outperform bond investments. However, it is not at all uncommon to observe investors with long horizons holding their investments entirely in bonds. Ar..

  Irr and npv measures use the same function so mathematically

IRR and NPV measures use the same function so mathematically they are not exceedingly different.

  Find the net present value-internal rate of return

For the following two mutually-exclusive projects, use Excel to find the net present value (NPV), internal rate of return (IRR), and the profitability index (PI). Assume the cost of capital (discount rate) is 8%. Which project should be accepted? Is ..

  Explain how the ebit chart works inputs determining the

explain how the ebit chart works inputs determining the outputs-the two lines on the chartand the indifference point in

  Define the discount window and the federal reserve policy

The Federal Reserve Discount Window was fundamental to the founding of the Fed in 1913. And while the basic structure has stayed the same, in at least one way its importance has been diminished and in at least one way its importance remains significa..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd