a. Recalculate the yearly cash flows.
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![An endowment invests $150,180,000 in WeGrow II, an early-stage venture fund with a 20% incentive fee and a 5% preferred return
[hurdle rate]. The fund invests in the following companies (for simplicity, ignore staged financing and management fees; assume
instead that all investments occur at the end of their denoted year):
Investment (Year
Invested)
$ 35,030,000 (2)
$ 20,030,000 (2)
$ 15,030,000 (2)
$ 20,030,000 (3)
$ 25,030,000 (3)
$ 100,030,000 (7)
$ 125,030,000 (10)
$0 (9)
$ 35,030,000 (4)
Instead of a 5% preferred rate, assume there is an 8% preferred rate with a 100% catch-up.
Required:
a. Recalculate the yearly cash flows.
b. What is the IRR to the endowment, net of fees?
Start-up Name
SPE Incorporated
NiteID Corporation
D-Ton Incorporated
IKL Limited
H&L Innovations
SimLife Technologies
Complete this question by entering your answers in the tabs below.
Required A
Recalculate the yearly cash flows.
Note: Negative amounts should be indicated by a minus sign.
Year Net Cash Flows
1
W|N
2
Harvested (Year
Harvested)
$ 62,164,400 (7)
$ 300,030,000 (9)
$0 (8)
Required B
3
4
5
6
7
8
9
10](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1fa60c78-9fb4-4e0c-b7cf-c42e4b87eac4%2Fe4d892d6-8e5f-4b9e-a143-994712772f07%2Fdizyotc_processed.png&w=3840&q=75)
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