FFRONTIERSPACEVENTURES

Fund economics

PE/VC Fee & Carry Calculator

See how management fees, expenses and carry shape the value that reaches an LP—and test the terms against the outcome you expect.

The main question this calculator answers“If this PE or VC fund delivers its stated gross multiple, what net multiple and terminal value might remain for the LP?”Start with the core terms, then inspect the gross-to-net bridge and a fee/carry sensitivity.

Your modeled LP outcome

All dollar amounts are illustrative terminal values. Annualized return is not IRR because this simple model has no dated capital-call or distribution schedule.

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
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 the gross investment portfolio value, then see the management fees, expenses and carry that bridge to net LP terminal value.

$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 recalculates net LP MOIC at your selected gross outcome while changing only the investment-period management fee and carry rate.

Net LP MOIC

How the model works

The calculator multiplies capital actually invested by gross fund MOIC to estimate gross portfolio value before fund-level charges. It then calculates annual management fees using your chosen basis, recurring and organizational expenses, and a simplified whole-fund carry amount after return of capital and any selected preferred return. The resulting annualized figure is a terminal-value equivalent; a proper IRR requires actual dated calls and distributions. The full model contract is maintained separately for this calculator.

Frequently asked questions

What does gross fund MOIC mean here?

It is gross investment portfolio value divided by capital actually invested, before fund-level management fees, expenses and carried interest. It is not the LP's net multiple.

Why is the annualized return not called IRR?

PE and VC IRR depends on when capital is called and distributed. With only a fund life, this tool shows a clearly labelled terminal-value equivalent instead of false IRR precision.

Does this model choose a European or American waterfall?

No. V1 uses a transparent simplified whole-fund carry calculation. It does not model deal-by-deal carry, clawbacks or a waterfall convention selection.

For educational and planning use only. This illustrative model is not investment, legal, tax or accounting advice, and actual fund documents, cash-flow timing, fee offsets and carried-interest terms may produce materially different outcomes.