F FRONTIERSPACE Ventures

Private Equity Fee & Carry Calculator for Institutional LPs

For pension, endowment, family-office and fund-of-funds teams assessing how fees, expenses and carried interest affect net LP value, then test the terms through the gross-to-net bridge and fee/carry sensitivity.

The main institutional LP question“If this private-equity or venture fund delivers its stated gross multiple, what net multiple and terminal value might our institution retain?”

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
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 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 starts with invested capital and the gross MOIC you enter. It subtracts management fees, expenses and simplified whole-fund carry to estimate what reaches the LP. 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?

The simplified whole-fund model applies the entered carry rate to modeled profit after management fees and fund expenses. It does not reproduce a legal distribution waterfall.

Why is the annualized return not called IRR?

IRR needs the dates of capital calls and distributions. This calculator has no cash-flow schedule, so it shows an annualized terminal-value estimate instead.

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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