In the "Structure of Venture Capital" example, why does the Limited Partner only earn a 14% IRR when the investments are assumed to earn 20% per year over the 10-year life of the fund? In what ways could the Limited Partner improve their results?© BrainMass Inc. brainmass.com May 20, 2020, 7:53 pm ad1c9bdddf
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In the Structure of Venture Capital example, the Limited Partner earns a 14% IRR in spite of the fact that the investments will earn 20% per year over the 10-year life of the fund. There are ...
This solution helps with a problem regarding structure of venture capital.