Quick LP Calculator
Fund-of-Funds Fee Layer Calculator
See how two layers of fees and carry can change the LP’s ending value.
How does a 2.50x underlying return change after fund and fund-of-funds economics?
Results
Layered economics at a glance
Illustrative estimate based on the assumptions shown.
How it is calculated
Gross value → underlying fees and carry → FoF fees and carry → LP net value
The model uses a normalized $100 basis, annual fee drag and sequential profits-only carry. It does not reproduce actual cash-flow timing, fee step-downs, hurdles or waterfalls.
What this tells you
Read the result in context
Fund-of-funds investors can pay economics at both the underlying fund and portfolio-vehicle levels. The rates should not simply be added: each layer acts on a different value base and in a different order.
Frequently asked questions
Why not add the two carry rates together?
Each carry layer is applied sequentially to a different remaining profit base, so simple addition is misleading.
What does value retained by LP mean?
Estimated net ending value divided by the gross ending value before either layer.
Does this include fee offsets or hurdles?
No. It is an illustrative quick estimate; actual fund and FoF documents may include offsets, hurdles, step-downs and other terms.