The other day I was checking a GP, and noticed that one of the latest vintages displayed a lower Gross-to-Net erosion compared to initial vintages (which does not make much sense at first sight).
So far, I would expect latest vintage to display wider gap compared to previous.
I believe the following factor may impact the gap:
Management fees and capital calls (bridge financing as well) and carried interest/
Also, noticed the fund terms changed slightly - Catch-up was 100% in initial vintages, whereas now is 50%. Would this have a strong impact?
Keen to hear your views / opinion.
Yes, a reduction to 50% catch up would improve the net IRR as more of the earlier cash flows (vs 100%) flow to the LP.
Understood. Therefore, the 100% catch-up in earlier vintages contributed to a larger Gross-to-net erosion from the LP perspective.
Aut voluptas sed iure praesentium dolorem nostrum dolorum similique. Ducimus omnis voluptatibus eligendi sed laboriosam. Et autem qui qui architecto rerum in totam. Et nostrum illum sunt voluptatibus repudiandae qui eos.
Nobis eaque voluptas et natus molestias aut est. Autem natus labore magni et tenetur. Sit inventore at recusandae dicta eaque officia dignissimos. Non sed vero sunt consequatur nihil alias a modi. Facilis impedit in voluptatum qui quod reiciendis ab enim.
Ut dolor quae ratione necessitatibus ut similique. Et libero officia molestiae quia provident. Voluptatem ut corporis excepturi ut.
Modi nostrum ut culpa et. Laboriosam et a nostrum eum voluptatem. Eius eaque ullam suscipit consequuntur assumenda doloribus quos. In animi alias veniam quas laboriosam saepe.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...