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High Returns On A Small Fund Challenge Low Returns On A Big Fund

David Teten

Second, credibility (fund reputation) is a huge confound. Now, it is true, if you search you’ll find another Kaplan study that shows increasing fund size among sequential funds by the same manager has a negative correlation with return.”. Therefore, the claim won’t extrapolate to any specific brackets.

LP 114
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The Venture Spiral

K9 Ventures

In addition, there is a performance incentive — the Carried Interest or Carry. The carry is typically around 20% of any gains on the fund. A couple of years into it, the friendly neighborhood search giant, Big Kahuna, shows up and decides to acquire Little Fish for $100M.

IRR 48