What does a GP actually take home? Model the real economics of running a venture fund.
| Return | Fee Income | Carry Income | Total / GP |
|---|
Management fees accrue at the stated rate on committed capital during the investment period, then step down to the post-period rate on invested capital for the remaining fund life. Carry is calculated as the GP's share of profits above the preferred return hurdle. Fund expenses (legal, audit, admin) are deducted before GP distributions.
This model uses a simplified European-style waterfall. American-style (deal-by-deal) carry would produce different economics. All figures are pre-tax and pre-GP-commit return.