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General VC Questions

What happens if I adjust the “Fund Duration (Management Fees time period)” to more than 12 quarters — will that reduce Net IRR due to higher fees over time?

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Yes, extending the fund duration beyond 12 quarters can reduce the Net IRR due to higher cumulative management fees over time. Management fees are typically charged annually as a percentage of committed capital, so a longer duration means more fees, which can reduce the net returns to investors.

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