Investor pays
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Actually invested in the company
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Shares received
Break-even exit
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Expected net multiple
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Expected fees, whole SPV
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Where the investor's money goes
Of every unit paid in, how much reaches the company and how much goes to fees on day one.
Price per share
From the SPV's purchase price to what the investor really pays per share.
Investor outcome by scenario
After every fee, including carry at exit.
Fee drag across exit outcomes
The investor's net multiple against the company's share-price multiple. The gap between the lines is the cost of the fees.
Who earns what
Fees from the whole SPV, split between the SPV owner, the GPs and the finder.
How it's calculated
- The management fee is charged on the full ticket for every year charged, all at subscription. Setup costs are split across investors in proportion to their ticket and paid to third parties, so they aren't anyone's income.
- What's left buys shares at the investor price, which is the SPV's cost per share plus the spread. The spread is income for the SPV, and the money reaching the company is the shares times the SPV's cost.
- At exit, proceeds are the shares times the exit price. Carry is taken on the profit over the ticket once proceeds pass the hurdle (ticket compounded at the hurdle rate), with full catch-up. With a 0% hurdle, carry is simply a share of the profit.
- The IRR assumes one payment at subscription and one at exit, with no interim distributions or recallable capital.
- The finder takes their share of the upfront fees and carry earned on their investor's ticket only. Each GP's percentage applies to everything left after the finder, and the SPV owner keeps the rest.
- The expected value weights each scenario by its probability. If the probabilities don't add up to 100%, they're rescaled.