XYZ partners is raising their first fund, XYZ Partners Fund I, with $100M in committed capital, annual management fees of 2 percent, carried interest of 20 percent, and a carried interest basis of committed capital. The four individuals on the XYZ team have previously managed the captive VC portfolio for the Goldenbucks family. During the 10 years of Management the Goldenbucks' VC portfolio, the partners did not charge management fees or carried interest, and they achieved a GVM of 3.5.
-Suppose that XYZ Fund I earns the same GVM as the partners earned for Goldenbucks. What would be the value multiple be for the fund?
-What would be the GP% of the fund?