F FRONTIERSPACE Ventures

Private Equity Fee & Carry Calculator for Institutional LPs

See how fees, expenses and carried interest change the value an LP keeps. Compare value before and after costs, then test different fee and carry rates. For pensions, endowments, family offices and funds of funds.

Questions this calculator answers1. If a private equity fund doubles our money before fees, how much would we keep after fees and carry?2. How much would we keep if the fund charges a 2% yearly fee and takes 20% of profits?3. How much must the fund earn for us to reach our target cash value after fees?

Your modeled LP outcome

Dollar amounts are estimates of value at the end. The yearly return shown is not IRR. This model has no dates for capital calls or cash returned.

Net LP MOIC
2.25x
Gross investment value$300.0m3.00x on $100.0m invested
Net LP terminal value$225.0mAfter all modeled economic drag
Gross MOIC required for target—To reach the selected net LP value
Total economic drag$75.0m25.0% of gross value
Management fees$15.0mAfter fee offsets
Fund expenses$2.0mRecurring plus organizational
Carried interest$40.0mOn modeled distributable profit
Illustrative annualized return8.4%Terminal-value equivalent, not IRR
LP share of gross profit80.0%After carry; fees shown separately
Modelled fund end203610-year horizon

Gross-to-net waterfall

Start with investment value before costs. Subtract management fees, expenses and carry to see the value left for the LP at the end.

$75.0m total drag
Gross valueEconomic dragNet LP value

Gross MOIC versus net LP MOIC

Hold the terms constant and see how much of each gross outcome reaches the LP. This is a terminal-value comparison, not an IRR curve.

At 3.00x: 2.25x net
Gross fund MOICNet LP MOIC

Fee & carry sensitivity

Each cell shows net LP MOIC for the same gross result. Only the fee charged during the investment period and the carry rate change.

Net LP MOIC

How the model works

The calculator starts with invested capital and the gross MOIC you enter. It takes out management fees, expenses and simple whole-fund carry to estimate what the LP keeps. It can also work backward to find the gross MOIC needed for your target net value. The annualized figure is not IRR because the model has no dated cash flows.

Frequently asked questions

What does gross fund MOIC mean here?

Gross MOIC is portfolio value before fees and carry divided by invested capital. It is not the LP's net multiple.

How is carried interest calculated in this model?

This simple whole-fund model first takes management fees and fund expenses out of profit. It then applies the carry rate you enter. It does not reproduce the payout rules in a legal fund agreement.

Why is the annualized return not called IRR?

IRR needs the dates of capital calls and distributions. This tool has no cash-flow schedule. Instead, it estimates a yearly rate from the ending value.

Does this model choose a European or American waterfall?

No. It uses a simple whole-fund carry model. It does not model deal-by-deal carry, clawbacks or different waterfall structures.

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