Venture Capital

LP Fund Returns Calculator

Healthcare VC funds market a "3× target" — but what does that actually pay you after the 2% management fees and 20% carried interest? Find out.

Fund Terms

Your commitment ($)

Target multiple (gross)

Most healthcare VCs target 3× gross. Top-quartile funds hit it; many don't.

Hold period (years)

Standard fund life is 10 years.

Annual management fee %

Typically 2% during the investment period.

Fee period (years)

Usually 5 years of full fees before stepdown.

Carried interest %

GP's share of profits above hurdle. Standard is 20%.

Hurdle rate %

LP earns up to this rate before GP gets carry. Set to 0 if no hurdle.

Your Net Return

$687,946

2.75× net multiple · 10.7% net IRR

S&P 500 (same period, ~10% CAGR)$648,436

Where the money goes

Commitment$250,000

3× gross return$750,000

Gross profit$500,000

− Mgmt fees (2% × 5y)−$25,000

− Carry (20% above hurdle)−$37,054

Net return to you$687,946

💡 The math you should know

A "3× gross" fund typically becomes ~2.3–2.5× net to LPs after fees and carry. For your $250,000 commitment, that's $62,054 flowing to the GP instead of you.

Educational only — not financial advice. Real fund economics include American/European waterfall structures, catch-up provisions, fee stepdowns, and recycling clauses this calculator simplifies. LPs experience the "J-curve" — years of negative IRR before exits. Past fund performance does not predict future returns.