Accordion Example
Total Raised Amount ($)
What it means: This slider lets you set how much money the fund has raised from investors. It’s the total pot of money that the GP will be managing.
Example: If you set this to $1,000,000, it means the fund has raised one million dollars to invest.
GP Performance Fee (%)
What it means: This is the percentage of the profits that the GP will take as a reward for doing a good job and making money for the investors.
Example: If this is set to 20%, it means that for every $100 of profit made, the GP will keep $20, and the remaining $80 goes to the investors.
GP Management Fee (% per year)
What it means: This is the fee the GP charges every year for managing the fund, regardless of whether the fund makes a profit or not. It’s like a salary for the GP.
Example: If this is set to 2%, it means that every year, 2% of the total raised amount will go to the GP as a management fee.
Investment Horizon (years)
What it means: This is how many years the fund will be invested before the investors get their money back, along with any profits.
Example: If this is set to 5 years, it means that the GP will manage the investments for 5 years before the fund is closed, and the money is returned to the investors.
Expected Return Rate (% per year)
What it means: This is how much the GP expects the fund to grow each year, on average. It’s like predicting how well the investments will do.
Example: If this is set to 8%, it means the GP expects the fund to grow by 8% each year. So if you start with $100, it would grow to $108 in one year.
Why These Sliders Matter