Fund Economics D

This financial model is a tool of the Venture Capital (VC) Development Network of the Mulitlateral Investment Fund (MIF)
and the Latin American Venture Capital Association (LAVCA).
Notice and Disclaimer

This financial model illustrates the basic economics of a traditional venture capital or private equity fund as practiced
in most parts of the world today. The model provides a set of key variables that may be changed to test the
sensitivity of results under different assumptions. Please review carefully the assumptions on the second worksheet.
This file is meant for the general and non-exclusive use of the MIF VC Network as well as LAVCA, its members and
stakeholders. The model is not intended to illustrate any single fund.
The model is, to the best of our knowledge, a picture of what would occur based on the selected assumptions.
However, the spreadsheet is complex and there is no assurance it is error-free. The selection of certain permutations
of variables may produce inaccurate results.
The model relies on numerous assumptions, including a "linear model" for contributions and distributions. The
performance of an actual fund will likely be significantly different than the modeled performance. Any such
differences, or other differences from the assumptions on which this model is based, will impact the amounts and
timing of distributions to fund partners. Consequently, actual results will likely be significantly different, and
potentially less favorable, than the results illustrated by any one set of assumptions.
Produced for the MIF VC Network and LAVCA by
October 26, 2006
Fund Economics Toolkit
Latin American Venture Capital Association
Venture Fund -- Basic Economics

Modify only cells displayed in blue bold.
Assumptions
allocations
priority secondary
99.0%
80.00%
1.0%
20.00%
100.0% 100.00%
$20,000.0 L.P. Commitments

$200.0 G.P. Commitments
$20,200.0 Partnership size
190.0
13
$20,010.0
10.00%
$13,887.4
8
5
10
100.0%
1/1/06
16.00%
5
1.20%
2
17.00%
2.50%
6
10.00%
$5,065.4
0.25%
$650.3
8.00%
$50.0
Fund Year
New Investments
Liquidations of New Invest
Reinvested Capital
Liquidations of Reinvested
Invested Capital
Organization expenses
Fund term (years)
Investable capital
Held in reserve
Originally invested in deals
Years to invest capital (will determine Fund Term)
Average years for liquidity on deal investments (will determine Fund Term)
Last year to reinvest cost basis of liquidations (not to exceed Fund Term less 3 years)
Reinvestment of capital during active investment period (up to Committed Capital)
Initial draw date
First draw (can cause negative cash balance if too small). Balance of draws over "Years for capital calls".
Years for capital calls - assumed even after initial year (can cause negative cash balance if too small)
Annual current return on invested capital
Year lag time to start receiving current return
Capital gain compounded annual irr on invested capital
Annual management fee - % committed capital
Initial year of management fee reduction
Management Fee reduction %
Total management fees
Annual partnership expenses
Total Partnership expenses
Preferred return to limited partners
Desired max cash balance after distributions
10
11
12
13
1,735.9
1,735.9
1,735.9
1,735.9
1,735.9
0.0
0.0
0.0
3,471.9
5,207.8
6,943.7
8,679.7
1,735.9
(1,735.9)
1,735.9
0.0
10,415.6
1,735.9
(1,735.9)
1,735.9
0.0
12,151.5
1,735.9
(1,735.9)
1,735.9
0.0
13,887.4
(1,735.9)
1,104.8
(1,735.9)
11,520.3
(1,735.9)
0.0
(1,735.9)
8,048.5
(1,735.9)
0.0
(1,735.9)
4,576.6
(1,735.9)
0.0
(1,104.8)
1,735.9
20.8
41.7
62.5
104.2
3,805.9
3,910.1
125.0
3,805.9
3,930.9
138.2
7,611.9
7,750.1
96.6
7,611.9
7,708.5
54.9
7,611.9
7,666.8
1,735.9
14
15
16
17
18
19
20
Totals
(1,735.9)
0.0
#VALUE!
#VALUE!
#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

0.0
0.0
0.0 #VALUE! #VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
20.8
6,228.1
6,248.9
#VALUE!
#VALUE!
#VALUE!
#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE!
#VALUE!
#VALUE!
13,887.4
#VALUE!
#VALUE!
#VALUE!
Fund Income Statement

Current Income
Liquidations + Capital Gain
Total Revenue
0.0
0.0
20.8
41.7
62.5
83.3
3,805.9
3,889.3
500.3
50.0
14.6
564.9
500.3
50.0
14.6
564.9
500.3
50.0
14.6
564.9
500.3
50.0
14.6
564.9
500.3
50.0
14.6
564.9
1,735.9
450.2
50.0
14.6
514.9
1,735.9
405.2
50.0
14.6
469.8
1,735.9
364.7
50.0
14.6
429.3
3,471.9
328.2
50.0
14.6
392.9
3,471.9
295.4
50.0
14.6
360.0
3,471.9
265.9
50.0
14.6
330.5
2,840.7
239.3
50.0
14.6
303.9
#VALUE!
215.3
50.0
14.6
280.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
#VALUE!
5,065.4
650.3
190.0
5,905.8
Direct Fund Gain/Loss
1,638.5
1,704.3
1,765.7
3,885.4
3,876.6
3,864.4
3,104.3
#VALUE!
#VALUE!
Direct Fund Cumulative G/L

04/23/2016
#VALUE! #VALUE! #VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
Cost Basis of Liquidations

Management Fee
Partnership Expenses
Amort. of Org Expense
Total Costs
Year
10
11
12
13
14
15
16
17
18
19
20
Totals
#VALUE! #VALUE! #VALUE! #VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
0.0

14.6
14.6
14.6
14.6
14.6
3,885.4
14.6
3,471.9
3,876.6
14.6
3,471.9
3,864.4
14.6
3,471.9
3,104.3
14.6
2,840.7
#VALUE!
14.6
#VALUE!

0.0
0.0
0.0
0.0
0.0
0.0
0.0
3,232.0
3,393.6
3,393.6
3,393.6
3,393.6
(190.0) #VALUE!
0.0
0.0
0.0
#VALUE! (1,735.9) (1,735.9) (1,735.9) (1,735.9)
1,638.5
1,704.3
1,765.7
14.6
14.6
14.6
1,735.9
1,735.9
1,735.9
3,393.6
0.0
0.0
0.0
(3,471.9) (3,471.9) (3,471.9)
0.0
#VALUE!
#VALUE!
#VALUE!
0.0
#VALUE!
#VALUE!
#VALUE!
0.0
#VALUE!
#VALUE!
#VALUE!
0.0
#VALUE!
#VALUE!
#VALUE!
0.0
#VALUE!
#VALUE!
#VALUE!
0.0
0.0
0.0
0.0
0.0
0.0
0.0
#VALUE!
190.0
#VALUE!
20,200.0
#VALUE!
#VALUE!
#VALUE!
#VALUE!
3,232.0
258.6
258.6
#VALUE!
#VALUE!
#VALUE!
20,200.0
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
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#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!

1,735.9
3,471.9
5,207.8
6,943.7
8,679.7
185.4
170.8
156.2
141.5
126.9

10,415.6 12,151.5 13,887.4
112.3
97.7
83.1
#VALUE!
11,520.3
68.5
#VALUE!
#VALUE!
8,048.5
53.8
#VALUE!
#VALUE!
4,576.6
39.2
#VALUE!
#VALUE!
1,735.9
24.6
#VALUE!
#VALUE!
#VALUE!
10.0
#VALUE!

10.0
10.0
10.0
10.0
10.0
10.0
10.0
0.0 #VALUE! #VALUE! #VALUE! #VALUE!

3,200.0
3,360.0
3,360.0
3,360.0
3,360.0

3,360.0 #VALUE! #VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
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#VALUE!
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#VALUE!
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#VALUE!
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#VALUE!



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0.0 #VALUE! #VALUE! #VALUE! #VALUE!

32.0
33.6
33.6
33.6
33.6

33.6 #VALUE! #VALUE!
#VALUE!
#VALUE!
#VALUE!
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#VALUE!
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#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
1/1/06
7/2/07
7/1/08
7/1/09
7/1/10
7/1/11
7/1/12
7/1/13
7/1/14
#VALUE!
#VALUE!
7/1/15
#VALUE!
#VALUE!
7/1/16
#VALUE!
#VALUE!
7/1/17
#VALUE!
#VALUE!
7/1/18
#VALUE!
#VALUE!
7/1/19
7/1/20
7/1/21
7/1/22
7/1/23
6/30/24
6/30/25
Fund Cash Flow

Begin Cash
0.0
Fund Gain/Loss
plus Amort of Org Exp
plus Cost Basis of Liquidation
plus Capital Contributions
less Payment of Org Costs
less New Invest & Reinvest
less Distributions
Ending Cash
Cumulative Cap Contributions
Annual Preferred Return
Cumulative Preferred Return
Cumulative Distributions
Distrib per Contr. Cap.-priority
Distrib per Contr. Cap.-2ndary
6,625.6
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
10,019.2
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
13,412.8
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
16,806.4
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
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#VALUE!
#VALUE!
#VALUE!
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#VALUE!
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#VALUE!
#VALUE!
#VALUE!
#VALUE!
#VALUE!
Fund Balance Sheet

Cash
Investments (Cost basis)
Org. Expense
Total Assets
LP Partner Account
Begin
Contributions
Allocations - priority
Allocations - secondary
Ending
GP Partner Account
Begin
Contributions
Allocations - priority
Allocations - secondary
Ending
Total Partner Accounts
Cash Flow Dates *

LP Net Cash Flow
GP Net Cash Flow
0.0
#VALUE!
#VALUE!
0.0
#VALUE!
#VALUE!
#VALUE!
0.0
#VALUE!
#VALUE!
0.0
#VALUE!
#VALUE!
#VALUE!
Return on Investment
Net LP IRR**
Net GP IRR**
Err:504
Err:504
* All cash flows except initial draw are assumed to occur mid year.
** Requires that XIRR function is enabled
04/23/2016
1
550.275
2
1100.55
3 1650.825
4
2201.1
5 2751.375
6 3251.625
7 3706.8525
8 4121.5598
9 4499.7988

Fund Economics D

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Fund Economics D

Uploaded by

Copyright:

Available Formats

This financial model is a tool of the Venture Capital (VC) Development Network of the Mulitlateral Investment Fund (MIF)

and the Latin American Venture Capital Association (LAVCA).

Notice and Disclaimer

Produced for the MIF VC Network and LAVCA by

October 26, 2006

Fund Economics Toolkit

Latin American Venture Capital Association

Venture Fund -- Basic Economics

$20,000.0 L.P. Commitments

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Fund Income Statement

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Direct Fund Gain/Loss

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Direct Fund Cumulative G/L

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Cost Basis of Liquidations

#VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

0.0 #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

0.0 #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE!

#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Fund Cash Flow

Fund Balance Sheet

Cash Flow Dates *

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