What is the typical 10% IRR hurdle faced by first-time funds for limited partners?
What is a standard hurdle on carry for first time funds? I have an LP saying at least a 10% IRR is what they're used to.
0 - do not put in a hurdle!
Thanks
@Mike Suprovici
- Very valuable info. Is it because as emerging fund managers, we have small fund sizes? Is this the same with Recycling rate?
When you have a small fund size, you're optimized for the carry rather then the fees. Hurdle rates make it harder for you to receive carry.
Recycling has little to do with the above.
Recycling has little to do with the above.
Many thanks!