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Tenev: I think it was actually pretty challenging early on. There were a lot of people who just didn't believe in it, and we had to bang down a ton of doors, and we were really relentless. We probably knocked on 75 doors before we actually made it work.
Private equity firms pool investor capital, typically using it to buy existing businesses and take over their management. By cutting costs and other means, they attempt to increase the value of those companies so that they can later sell them at a substantial profit. Private equity firms are run by a general partner, while the investors are limited partners.
Venture capitalists typically utilize a blend of qualitative insights and quantitative methods to arrive at an investment's valuation. Discounted Cash Flow (DCF) analysis is a prevalent quantitative method, projecting the future cash flows of a company and discounting them to present value using an estimated Internal Rate of Return (IRR) . This reflects the time value of money and risk associated with the venture.
Will Gornall of the Sauder School of Business and Steven N. Kaplan of Chicago Booth School of Business have contributed significantly to the understanding of venture capital decision-making processes. Their work often explores the systematic approach VCs use in evaluating potential investments. They provide frameworks that address the critical stages of decision-making, which include sourcing, evaluating, and selecting promising ventures.
The 2% management fee, on the other hand, is usually taxed as ordinary income; however, some general partners have also found a way around that by using a tactic called a management fee waiver. By forgoing their fee in return for a greater share of the partnerships profits, they can transform it into a capital gain and pay tax at the lower rate.
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发表于 2024-9-12 03:07:46
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