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Calculating Returns - Clip 11

The document outlines the inputs and outputs for an investment fund including management fees, hurdle rates, carried interest, committed capital, and percentage for managers. It then shows capital drawdowns and investments over time along with returns calculated at global and yearly IRRs.

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M SAI SHRAVAN KUMAR
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© © All Rights Reserved
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31 views

Calculating Returns - Clip 11

The document outlines the inputs and outputs for an investment fund including management fees, hurdle rates, carried interest, committed capital, and percentage for managers. It then shows capital drawdowns and investments over time along with returns calculated at global and yearly IRRs.

Uploaded by

M SAI SHRAVAN KUMAR
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Inputs

Management fee 2%
Hurdle rate 8%
Carried Interest 30%
Committed Capital (mln.) 400
Percentage Mangers (GPs 2%
Outputs
Committed Capital 400
Capital at the end 1792

investment period divestment period


draw-downs
years 1 2 3 4 5 6 7 8 9

(+) draw-downs 100 200 100 0 0 0 0 0 0


(-) investment 80 190 130 180 310 360 100 200 50
(+) divestment 0 0 40 200 320 370 100 250 500
(-) management fee 8 8 8 8 8 8 8 8 8
cash 12 14 16 28 30 32 24 66 508

Case 1: Global IRR Return for Investors and Managers


Fund Global IRR 348%
Net Global IRR 340% Gross return for managers (GPs)
Carried interest 102% Gross return for investors (LPs)
For managers (GPs) 408 Yearly return for managers (GPs)
For investors (LPs) 1384 Yearly return for investors (LPs)

Case 2: Yearly IRR Yearly return for Investors and Managers


Fund Yearly IRR 16.2%
Net yearly IRR 8.2% Gross return for managers (GPs)
Carried interest 2.45% Gross return for investors (LPs)
For managers (GPs) 122.23350994 Yearly return for managers (GPs)
For investors (LPs) 1669.7664901 Yearly return for investors (LPs)

Chart for IRR 1 2 3 4 5 6 7 8 9


IRR -400 0 0 0 0 0 0 0 0
Investment GPs -8 0 0 0 0 0 0 0 0
Case1
Investment LPs -100 -200 -100 0 0 0 0 0 0

Investment GPs -8 0 0 0 0 0 0 0 0
Case2
Investment LPs -100 -200 -100 0 0 0 0 0 0
nt period extra

10 11 Total

0 400
0 1600
600 700 3080
8 8 88
1100 1792

5100.0%
346.0%
48.17%
14.73%

Managers

1527.9%
417.44%
31.34%
17.13%

10 11
0 1792
0 408
0 1384

0 122.2335099
0 1669.76649
Fund House State Street Inc
Fund Name Financial Select Sector SPDR Fund
PPM
LPA
SD
Signing of LPA Tells List of Investers
Commitment
SL No Name of the Investor Status Rs in Crs Weightage as %
1 Madhukar HNI 100 1.25
2 Sai Shravan HNI 80 1.00
3 LIC II 500 6.27
4 JP Morgan II 1000 12.53
5 Morgan Stanley ` 1200 15.04
6 Black Rock II 1500 18.80
7 American Express II 1400 17.54
8 S & P Global II 800 10.03
9 Synchrony Financials II 900 11.28
10 Moodys II 500 6.27
7980 100
Weightage as %

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