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Adithya Pappala

Stealth • 1m

#9TDAYVC-DAY-12 📌What is Management Fees? 📌What is a Expense for VC? 🎯Management Fees- Management Fees & Expenses contributed to the fund as per investment agreement between fund & Investment Manager.No SEBI Regulations in this Matter. It depends on India & Overseas Scenarios. Usually The Management fees is commited by the fund to investment manager during the capital Commitment in that period which ranges upto 2.5% of the fund. 🎯This fees only taken from the invested Capital but not to the committed capital. This fees has to be paid even though the fund is not generating any returns or profits. This is a issue with Indian Investors. The frequency of payment of Management fees may be quarterly, semi quarterly & annually based on the mutual agreement. Expenses are payable on management fees & usually charges are extra. Disclosures on Fees Structure are made in the Initial offer literature called Private Placement Memorandum(PPM) Follow Adithya Pappala for more VC👇

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Adithya Pappala

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#9TDAYVC-DAY-12 🎯Types of Expenses for VC? 🎯What is a Self-Managed Fund? 🎯Organisational Expenses: These are costs for VC Funds which includes such as Incorporation Costs, Statutory Compliance Cost of the Funds, Placement Commissions, Distri

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#9TDAYVC-DAY-11 📌What is Dry Powder? 📌What is Draw Down Amount? 🎯Drawn Down Amount & Dry Powder: Drawn Down Amount is the amount that has been Invested into the Bank account & Dry Powder is the commitment capital which will be invested.

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#9TDAYVC-DAY-9 🎯What is Due Diligence? 🎯What is Sponsors Commitment? 🎯Due Diligence: It should be conducted at two levels in AIF- When Investor subscribes to fund Corpous & The fund makes an Investment into Investee Companies. 🎯 Sponsor

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#9TDAYVC- DAY10 🎯What is meant by Blind Pool? 🎯What is Draw Down? 🎯Capital Commitments: Capital Commitments under less than 1 Crore is not acceptable under AIF.Employees or Directors of the AIF should Invest a minimum of 25 lakhs. 20 Crores

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#9TDAYVC-DAY-5 Who is Sponsor & Investment Manager in VC? 🎯Sponsors: Sponsor means a person who Setup AIF & Invests in. The Application to SEBI is made by the Sponsor.The sponsors should have to satisfy the criteria of Fit & Proper Person as pe

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#9TDAYVC-DAY-15 What are Additional Returns? What is the Catch-Up Clause? In Developed Markets, The structure is in 2-20% where 2 is Management Fees & 20 is Additional Returns.Additional Returns & 2-20 structure is not ideal in Indian AIF Market

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#9TDAYVC-Day 7 🎯What are Incentives for GP’S? 🎯Who are Distributors & Placement Agents? Incentives: Salary from the Investment Management Company or from the fund directly in case they are an individual Profits from Investments they make

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#9TDAYVC-DAY 6 📌Who is G.P & their Role in VC? G.P means a General Partner who looks after investments in Startups & works closely with the Founders. Basically, The VC you meet is a G.P. 🎯Role of G.P'S- Deal Sourcing: They need to find favourab

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Digant nagarkar

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Suggest any app for personal finance management, which automatically categorises the Expenses?

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#9TDAYVC-DAY-16 🎯What is High Watermark in VC? 🎯What are Distributions/Waterfall? Apart from hurdle rate, Some consider also “high watermark” This is more common practice in hedge funds. This market denotes the highest value recorded by the f

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