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What is the payoff to edwin the entrepreneur

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Reference no: EM133111641

-Larry (LP) invests $150,000 in a VC fund run by Gary (GP). Gary is under 2/20 compensation plan. Interest does not accrue on the dividends. Gary invests $150,000 in a firm run by Edwin (Entrepreneur). The pre-money value of Edwin's firm is $500,000. In five years, the firm sells for $4,500,000.

-What is the payoff to Edwin the Entrepreneur?

-What is the payoff to Gary the General Partner?

-What is the payoff to Larry the Limited Partner?

Reference no: EM133111641

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