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Business, 02.06.2020 22:01 magicgeek4980

Talltree Ventures has raised their $250M fund, Talltree Ventures IV, with terms as given in Appendix 2.B of the VC book (see Chapter 2). Construct an example of fund performance where the clawback provision would be triggered. In this example, compute the carried interest paid in each year, and show the total amount that must be paid back by the GPs upon the liquidation of the fund. Rf Month January February March April May June July August September October November December Ri 1.62% 1.24% 0.56% -1.25% -1.94% 1.83% -2.69% 0.72% -1.75% 2.11% 3.61% 2.83% Rm 2.04% 1.39% 0.96% -1.50% -2.15% 1.58% -2.87% 0.26% -2.95% 1.73% 4.23% 3.16% 0.08% 0.07% 0.07% 0.08% 0.06% 0.08% 0.09% 0.10% 0.11% 0.12% 0.14% 0.15% 10% 15% Expected Return Company A Company B Covariance matrix A A B 0.0066 0.0144 0.0066 B 0.0484 1 4 5 6 7 8 9 10 2 50.0 ow 50.0 30.0 20.0 0.0 0.0 0.0 50.0 0.0 104.6 109.0 50.0 185.2 0.0 259.6 341.9 51.3 292.9 29.3 316.4 94.9 232.5 116.3 0.0 0.0 0.0 104.6 year Investments portfolio value total returned capital returned capital to LPs cumulative returned capital to LPs carried interest port value after capital returned Management fee 0.0 348.7 104.6 104.6 155.9 0.0 0.0 51.3 88.9 93.0 0.0 0.0 0.0 0.0 83.7 450.8 0.0 0.0 0.0 0.0 50.0 29.3 185.2 0.0 274.1 6.0 51.3 0.0 290.6 367.1 23.3 0.0 0.0 0.0 20.9 185.2 263.6 221.5 116.3 109.0 5.0 259.6 5.0 244.1 5.0 0.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0

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Talltree Ventures has raised their $250M fund, Talltree Ventures IV, with terms as given in Appendix...
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