The following example illustrates fee calculations for a $100,000 commitment over a typical fund lifecycle. This is purely illustrative—actual results will vary significantly.
Investment Period (Years 1-5)
Year 1:
- Committed capital: $100,000
- Annual management fee: $100,000 × 1.5% = $1,500
- Capital called: $20,000 (including $1,500 management fee)
Years 2-5:
- Same calculation continues
- Total management fees over investment period: $7,500
Harvest Period (Years 6-12)
Management fee shifts from committed capital to invested capital. If $75,000 has been deployed to underlying funds:
- Annual management fee: $75,000 × 1.5% = $1,125
- This continues until fund liquidation
Performance Fee Calculation
Assume the fund generates $150,000 in total distributions:
- Return of capital: $100,000 (no performance fee)
- Profit: $50,000
- Performance fee: $50,000 × 10% = $5,000
- Net profit to investor: $45,000
Total Economics
On $100,000 commitment generating $150,000 distributions:
- Gross return: 1.5x
- Management fees paid: ~$15,000 (over 12 years)
- Performance fees paid: $5,000
- Net proceeds to investor: $130,000
- Net return: 1.3x
Underlying Fund Fees
This example shows only Esinli fees. Underlying venture capital funds also charge fees (typically 2% management, 20% performance), which reduce the gross returns available for distribution before Esinli's performance fee applies.
Important Limitations
This example assumes linear deployment, simplified timing, and specific return scenarios. Actual venture capital performance exhibits extreme dispersion. Some funds lose capital entirely; others generate multiples exceeding 3-5x. Median outcomes are typically more modest than illustrated here.
This is illustrative only and does not represent expected returns. Past performance does not guarantee future results.