When you say a venture fund needs to return 5x, is that exclusive of the initial capital?

It is inclusive of initial capital, but exclusive of the fees. I.e., 5x means 5x net of fees, but inclusive of the capital invested.

So the fund will likely need to do 5.6x-6x the initial capital (“gross”) to do “5x net”

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Published on June 27, 2017

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