Fees and carry calculator

Set a commitment and the fund's gross multiple, and see what management fees and carried interest take before the money reaches your client.

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Set the commitment and how well the fund's companies do. The result is what comes back to your client.

Commitment$250,000

$100k$2m

Gross multiple on money invested3×

1×5×

Illustrative, not a forecast or a recommendation. Typical terms: 2% a year in fees for 10 years, 20% carry above an 8% hurdle.

Gross proceedsFrom the money invested in companies—

Management fees2% a year for 10 years—

Carried interest20% of profit above an 8% hurdle—

Net to your clientAfter fees and carry—

Net multipleNet to your client divided by the commitment—

Assumptions and sources

Assumes the whole commitment is called, fees are 2% of the commitment a year for 10 years (20% in total) and the other 80% is invested in companies. The gross multiple applies to that invested 80%. Carry is 20% of profit once investors have their money back plus an 8% a year hurdle, compounded over an average of six years (about 59% of the commitment), with a full catch-up. Ignores fund expenses, fee step-downs, recycling of early proceeds, timing of cash flows and tax.

General information only. This tool is written for financial advisers and accountants. It doesn't take into account any person's objectives, financial situation or needs, and it isn't tax, legal or financial advice. Tax outcomes depend on individual circumstances and on legislation that may change. Past performance is not a reliable indicator of future performance. Fund interests are offered to wholesale investors only (Corporations Act s708). Tall Order manages an ESVCLP and has an interest in this topic.