Venture Capital CH2&3 Assignment

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Venture Capital / Assignments by Rahmati Name: Rahmatullah Rahmati ID NO: 1359 Assignment: Chapter 2 ! 3 e"er#ises 2.1 Suppose that a $200M VC fund has a management fee of 2.5 percent per year for the first five years, with a reduction of 0.25 percent (25 basis points in each year thereafter. !"" fees are paid on committed capita", and the fund has a ten#year "ife. hat are the "ifetime fees and investment capita" for this fund%

Venture Capital-Problem 2.1 Calculations  Ye  Ye ar 1

2

3

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5

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+

9

1%

Base Amount  $ 2%%&%%%&%%%' %%  $ 2%%&%%%&%%%' %%  $ 2%%&%%%&%%%' %%  $ 2%%&%%%&%%%' %%  $ 2%%&%%%&%%%' %%  $ 2%%&%%%&%%%' %%  $ 2%%&%%%&%%%' %%  $ 2%%&%%%&%%%' %%  $ 2%%&%%%&%%%' %%  $ 2%%&%%%&%%%' %%

Fee Percentag e

Annual Fees

2'5%(

 $ 5&%%%&%%%'%%

2'5%(

 $ 5&%%%&%%%'%%

2'5%(

 $ 5&%%%&%%%'%%

2'5%(

 $ 5&%%%&%%%'%%

2'5%(

 $ 5&%%%&%%%'%%

2'25%%(

 $ )&5%%&%%%'%%

2'%%%%(

 $ )&%%%&%%%'%%

1'*5%%(

 $ 3&5%%&%%%'%%

1'5%%%(

 $ 3&%%%&%%%'%%

 $ 1'25%%( 2&5%%&%%%'%%  $ 42,5,.   ,-tal  ,-tal .ees .ees $  ,-tal  ,-tal VC

Ameri#an ni0ersity - Aghanistan/ pring 2%1 Venture Capital Class

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Venture Capital / Assignments by Rahmati .un  ,-tal In0este

2,,.  $ 15!,5,. 

A##-ring t- my ab-0e 4,able Cal#ulati-ns& ,he -ll-6ings are the result: 1' 7ie time ee -r 1% years 8 42,5, "# 2' In0este Capital 8 15!,5, "#

2'2: supp-se that a $ 1 VC un has ees - 2'% per#ent per year in all years& 6ith these ees pai -n #-mmitte #apital in the rst 0e year an -n net in0este #apital -r year  thr-ugh 1%' ;-u #an assume the un is ully in0este by the beginning - year & then reali