# Inside the Fund Economics Tool

Sheet-by-sheet reference: every input, formula, and output. Use this to scan the model before purchase, or as a cell-level reference when editing with AI.

8 sheets 4 sections

## How to read this

Cells are referenced by `R<row>/<column><row>` notation. `R9/E9` means column E, row 9. `R38–R45` is a block of inputs spanning those rows. Multi-column ranges like `D39–J39` mean the same row across several columns. Types: INPUT = user-edited, FORMULA = calculated, DROPDOWN = select from list.

## Fund Economics Tool — Sheet Map

### Sheets (8)

README, License, Forecast, Forecast_1, Forecast_2, Scenarios, Glossary, Changelog

### Forecast (B1:K62) — Main Input & Output Sheet

#### Capital and Fund Assumptions (R5-R19)

| Row       | Label                                           | Type     | Default    |
|-----------|------------------------------------------------|----------|------------|
| R9/D9    | Total Committed Capital (Fund Size)           | INPUT ($)| $25M      |
| R10/D10  | GP Commit %                                    | INPUT (%)| 2%       |
| R10/F10  | GP Commit counted toward invested               | TOGGLE   | true      |
| R11/D11  | Organizational Expenses (one-time)             | INPUT ($)| $150k     |
| R12/D12  | Operational Expenses (annual)                   | INPUT ($)| $100k     |
| R13/D13  | Management Fees % per year                     | INPUT (%)| 2%       |
| R14/D14  | Recycled Capital %                              | INPUT (%)| 10%      |
| R15/D15  | Carry %                                        | INPUT (%)| 20%      |
| R16/D16  | New Investment Period years                     | INPUT (#)| 4         |
| R17/D17  | Management Fees period years                    | INPUT (#)| 10        |
| R18/D18  | Fund Operations period years                    | INPUT (#)| 10        |
| R19/D19  | Extension Period years                          | INPUT (#)| 0         |

#### Portfolio Construction (R22-R28)

| Row        | Label                           | Type    | Default          |
|------------|--------------------------------|---------|------------------|
| R26/D26-E26| % Allocation (New vs Follow)  | INPUT   | 100% / 0%        |
| R27/D27-E27| Average Check Size            | INPUT   | $750k / $0       |
| R28/D28-E28| # of Checks                   | FORMULA | 28.6 / 0         |

#### Return Assumptions (R31-R39) — POWER LAW TIERS

| Row      | Type     | % of Capital | # Investments | Avg Gross Multiple | Holding Period |
|----------|----------|--------------|---------------|--------------------|-----------------|
| R35     | Writeoff | INPUT 60%    | FORMULA       | 0x                 | INPUT 2yr       |
| R36     | Small    | INPUT 20%    | FORMULA       | INPUT 1.5x        | INPUT 3yr       |
| R37     | Medium   | INPUT 10%    | FORMULA       | INPUT 5x          | INPUT 4yr       |
| R38     | Large    | INPUT 10%    | FORMULA       | INPUT 32x         | INPUT 6yr       |
| R39     | Totals   | FORMULA      | FORMULA       | FORMULA 4x        | FORMULA         |

#### Fund Performance (R41-R60) — ALL FORMULA

| Row    | Metric                       | Total     | LP       | GP       |
|--------|------------------------------|-----------|----------|----------|
| R44    | Called Capital (Paid-in)     | $25M     | $24.5M   | $500k    |
| R45    | Fund Expenses                 | -$1.15M  |          |          |
| R46    | Management Fees               | -$4.9M   |          |          |
| R47    | Recycled Capital              | $2.5M    |          |          |
| R48    | Invested Capital              | -$21.45M |          |          |
| R49    | Proceeds                     | $85.8M   |          |          |
| R50    | Carried Interest              |           | -$11.3M  | +$11.3M  |
| R51    | Distributions                 | $85.8M   | $72.3M   | $13.5M   |
| R53    | Gross Multiple                | 4.0x     |          |          |
| R54    | Net Multiple                  | 3.43x    | 2.95x    | 26.9x    |
| R55    | Gross IRR                     | 28.5%    |          |          |
| R56    | Net IRR                       | 25.0%    | 21.6%    | 81.5%    |
| R58-R60| PIC, DPI, RVPI                | 1.0 / 3.43 / 0 |        |          |

### Forecast_1 & Forecast_2 — Scenario Sheets

Identical structure to Forecast. Used for conservative and high cases.

- Assumptions are INPUT (can differ from base)
- Linked to Scenarios sheet for comparison

### Scenarios (B2:N32) — Comparison Output

- Shows Conservative, Base, High side by side
- R22-R25: Gross/Net Multiple, Gross/Net IRR for each
- R27-R28: Two sensitivity inputs (% change in # of high exits, % change in valuations)
- These two inputs drive Forecast_1 and Forecast_2 return tier adjustments

### Key characteristics

- No quarterly cash flows (unlike full VC Model)
- No time-series — everything is aggregate over fund life
- Three scenarios built in via duplicate sheets
- Power-law return tiers (zeros/small/medium/large) — not a single average multiple

Ready to put this to work?