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1. The $250M Arroyo Fund has completed its ten-year life. Its annual performance details are described in Q1
a. Compute the value multiple, realized value multiple, unrealized value multiple, and IRR for Arroyo after every year of its life.
b. At the end of Arroyo Funds life, what is its final GVM and GP%? Show your calculations.
Q1
| year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
| | | | | | | | | | | |
| Investments | 50.0 | 50.0 | 50.0 | 30.0 | 20.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| portfolio value | 50.0 | 109.0 | 185.2 | 259.6 | 341.9 | 348.7 | 292.9 | 316.4 | 232.5 | 104.6 |
| total returned capital | 0.0 | 0.0 | 0.0 | 0.0 | 51.3 | 104.6 | 29.3 | 94.9 | 116.3 | 104.6 |
| returned capital to LPs | 0.0 | 0.0 | 0.0 | 0.0 | 51.3 | 104.6 | 29.3 | 88.9 | 93.0 | 83.7 |
| cumulative returned capital to LPs | 0.0 | 0.0 | 0.0 | 0.0 | 51.3 | 155.9 | 185.2 | 274.1 | 367.1 | 450.8 |
| carried interest | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 6.0 | 23.3 | 20.9 |
| port value after capital returned | 50.0 | 109.0 | 185.2 | 259.6 | 290.6 | 244.1 | 263.6 | 221.5 | 116.3 | 0.0 |
| Management fee | 5.0 | 5.0 | 5.0 | 5.0 | 5.0 | 5.0 | 5.0 | 5.0 | 5.0 | 5.0 |
Q3
| Month | Ri | Rm | Rf |
| | | | |
| January | 1.62% | 2.04% | 0.08% |
| February | 1.24% | 1.39% | 0.07% |
| March | 0.56% | 0.96% | 0.07% |
| April | -1.25% | -1.50% | 0.08% |
| May | -1.94% | -2.15% | 0.06% |
| June | 1.83% | 1.58% | 0.08% |
| July | -2.69% | -2.87% | 0.09% |
| August | 0.72% | 0.26% | 0.10% |
| September | -1.75% | -2.95% | 0.11% |
| October | 2.11% | 1.73% | 0.12% |
| November | 3.61% | 4.23% | 0.14% |
| December | 2.83% | 3.16% | 0.15% |
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