Additionally, most PE funds look to double their investments in 5 years. So using a 20% discount rate is somewhat conservative with this in mind. PE funds tell

Additionally, most PE funds look to double their investments in 5 years. So using a 20% discount rate is somewhat conservative with this in mind. PE funds tell themselves they can achieve a 20% return, but in reality they are on average no better than index funds. See: http://www.google.com/search?sourceid=chrome&ie=UTF-8&q=average+pe+fund+return http://www.google.com/search?sourceid=chrome&ie=UTF-8&#3... I stand by my claim that in assuming 20% returns for vendor finance, PE funds are tricking themselves by a greater magnitude than they are tricking founders.