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Thesis & Presentation

Should VC Deck Target 3x or 5x Returns and Reference Total or Net AUMs for 30% Gross IRR over 7 Years?

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May 03, 2023
Guys for the VC deck when declaring target returns shall we go for 3x or 5x? Also shall this refer to total AUMs or AUMs net of fees? 30% gross IRR over 7 years would lead to a gross multiple of 6x which net of 20% management fees would result in 5x. Sounds about right to me no?
1 answer
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Mike Suprovici
Accepted Answer
May 03, 2023
you should have low - medium - high scenarios and ideally in the medium you should have a realistic pathway to ~5x
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