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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.Additional Returns could entirely depends on the Manager & his track record of experience. Investment Managers that deliver consistent returns above the preferred returns can expect the Additional Returns. As AIFāS are highly Illiquid in nature, Management Fees can be payable based on the NAV of the fund from time to time.NAV is the valuation of a fund like Assets-liabilties.Example,If a VC had 100 Crores of Assets & Liabilities are valued at 10 Crores then the NAV is 90 Crores.Additional Returns can only be assessed while they exit.The Investment Agreement also specify whether it will haveāCatch-Upā Provision or not?The catch up clause is meant to make investment managers extra additional returns of total returns. Shoot the Comments
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#9TDAYVC-DAY-16 šÆWhat is High Watermark in VC? šÆWhat are Distributions/Waterfall? Apart from hurdle rate, Some consider also āhigh watermarkā This is more common practice in hedge funds. This market denotes the highest value recorded by the f
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#9TDAYVC-DAY-17 šÆTypes of Waterfalls in VC? šÆWhat is Clawback? Two types that are āEuropean & American Waterfallā-Under European Waterflow, 100% of all Investment Cash is paid out to Investors on a pro-rata basis & therefore preferred returns
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#9TDAYVC- DAY-14 šÆWhat is Hurdle Rate? šÆWhat is Carry Fees? šÆThe preferred returns are also called as āHurdle Rateā in VC & P.E Funds. It is the threshold return that LPāS should receive prior GPāS receive. In developed markets, The hurdle
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⨠ENTREPRENEURS IQ TEST ⨠In the context of venture capital, which term describes a contractual clause that allows investors to protect their investment by requiring the startup to grant them the option to purchase additional shares at a discounted
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šļø Podcast Studio Investment Opportunity ā Noida š Investment Requirement: ā¹20 Lakhs š Location: Noida š° Returns: 3% Monthly ROI (with proper paper documentation) š Minimum Investment Period: 2 Years A professionally managed setup with legal d
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#9TDAYVC- DAY-8 šÆWho are Custodians in VC? šÆWhat is Net Asset Value? šÆCustodians:Custodians are for security but also safekeeping the Investments.Custodians needs to give & accept delivery securities of dematerialised Investment Funds whic
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#9TDAYVC- DAY10 šÆWhat is meant by Blind Pool? šÆWhat is Draw Down? šÆCapital 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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