4 ms·
20% of 30%+ IRR returns (which is representative of the top quartile) is more substantial than a 2% management fee
by mandateofheaven 11y ago
20% of 30%+ IRR returns (which is representative of the top quartile) is more substantial than a 2% management fee
- 7Figures2Commas 11y agoThere's a saying in private equity: you can't eat IRR. Venture capital funds aren't the worst products in financial services, but if they're as wonderful as you seem to be suggesting, why is it that there are lots of firms that haven't received a carry check in years and most VCs don't invest any money of real note in their own funds[1]? Is it possible you're overestimating? [1] https://hbr.org/2014/08/venture-capitalists-get-paid-well-to-lose-money https://hbr.org/2014/08/venture-capitalists-get-paid-well-to...