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To add to my comment., the key here is if one portfolio company is selling its services to another portfolio company for an inflated price (i.e. above what is c
by Blackstone4 8y ago
To add to my comment., the key here is if one portfolio company is selling its services to another portfolio company for an inflated price (i.e. above what is considered to be market).
From my other comment below: "One fund could be doing very well and the VC might be in carry whilst another is doing poorly. So if you're the VC you'd want to move money into the more successful fund to generate better returns and higher carry (i.e. 20% of the profits after fees)."