ClubDeal.com - Fee drag visualizer.xlsx

	A	B	C	D	E	F
1
2	Fee Drag Visualizer - Compare Net Returns Across Fee Structures
3	INPUT ASSUMPTIONS
4	Initial Investment	$1,000,000
5	Holding Period (years)	8
6	Gross MOIC (asset-level outcome)	2.00x
7
8	STRUCTURE A: Traditional Fund (2 & 20)
9	Annual Management Fee %	2.0%
10	Fee Base	$1,000,000
11	Annual Fee (currency)	$20,000
12	Total Annual Fees (cumulative)	$160,000
13	Upfront Transaction Fee %	1.0%
14	Upfront Transaction Fee (currency)	$10,000
15	Carry %	20.0%
16	Hurdle Rate %	8.0%
17
18	STRUCTURE B: Club Deal (1 & 15)
19	Annual Management Fee %	1.0%
20	Fee Base	$1,000,000
21	Annual Fee (currency)	$10,000
22	Total Annual Fees (cumulative)	$80,000
23	Upfront Transaction Fee %	0.5%
24	Upfront Transaction Fee (currency)	$5,000
25	Carry %	15.0%
26	Hurdle Rate %	8.0%
27
28	STRUCTURE C: Co-Invest (0.5 & 10)
29	Annual Management Fee %	0.5%
30	Fee Base	$1,000,000
31	Annual Fee (currency)	$5,000
32	Total Annual Fees (cumulative)	$40,000
33	Upfront Transaction Fee %	0.0%
34	Upfront Transaction Fee (currency)	$0
35	Carry %	10.0%
36	Hurdle Rate %	8.0%
37
38	CALCULATION OUTPUTS	Structure A	Structure B	Structure C
39
40	Gross Proceeds at Exit	$2,000,000	$2,000,000	$2,000,000
41	Less: Total Annual Fees	-$160,000	-$80,000	-$40,000
42	Less: Upfront Transaction Fee	-$10,000	-$5,000	$0
43	Proceeds Before Carry	$1,830,000	$1,915,000	$1,960,000
44
45	Hurdle Amount	$1,850,930	$1,850,930	$1,850,930
46	Excess Over Hurdle	-$20,930	$64,070	$109,070
47	Carry (if positive)	$0	$9,610	$10,907
48	Investor Net Proceeds	$1,830,000	$1,905,390	$1,949,093
49
50	Net MOIC	1.83x	1.91x	1.95x
51	Fee Drag (turns)	0.17x	0.09x	0.05x
52	Net IRR (simple annualized)	7.8%	8.4%	8.7%
53
54	Sensitivity analysis
55	Sensitivity: Impact of Annual Fee Rate on Net MOIC
56	Holding Period = 8 years \| Gross MOIC = 2.0x \| Carry = 20% \| Hurdle = 8%
57
58	Annual Fee %	Net MOIC	Fee Drag (turns)	Fee Drag (%)	Net IRR %
59	0.0%	2.00x	0.00x	0.0%	9.1%
60	0.5%	1.98x	0.02x	1.0%	8.9%
61	1.0%	1.97x	0.03x	1.5%	8.8%
62	1.5%	1.95x	0.05x	2.5%	8.6%
63	2.0%	1.93x	0.07x	3.5%	8.4%
64	2.5%	1.91x	0.09x	4.5%	8.2%
65	3.0%	1.89x	0.11x	5.5%	8.0%
66
67	Sensitivity: Impact of Hold Period on Net MOIC
68	Annual Fee = 1.5% \| Gross MOIC = 2.0x \| Carry = 20% \| Hurdle = 8%
69
70	Hold Period (years)	Net MOIC	Cumulative Fees ($)	Fee Drag (turns)	Net IRR %
71	3	1.96x	$45,000	0.04x	10.2%
72	5	1.93x	$75,000	0.07x	9.8%
73	7	1.90x	$105,000	0.10x	9.4%
74	8	1.88x	$120,000	0.12x	9.2%
75	10	1.84x	$150,000	0.16x	8.8%
76	12	1.79x	$180,000	0.21x	8.3%
77
78	Sensitivity: Impact of Carry % on Net MOIC (Winner Deal)
79	Holding Period = 8 years \| Gross MOIC = 3.0x \| Annual Fee = 1.5% \| Hurdle = 8%
80
81	Carry %	Net MOIC	Carry Amount ($)	Fee Drag vs Gross	Net IRR %
82	10%	2.82x	$26,200	0.18x	13.5%
83	15%	2.78x	$39,300	0.22x	13.2%
84	20%	2.73x	$52,400	0.27x	12.8%
85	25%	2.68x	$65,500	0.32x	12.5%
86	30%	2.62x	$78,600	0.38x	12.0%
87
88	Scenario Comparison: 5 Real-World Fee Stacks
89	Investment = $1M \| Hold = 8 years \| Gross MOIC = 2.5x \| Gross Proceeds = $2.5M
90
91	Scenario	Annual Fee	Carry	Upfront Fee	Net MOIC	Fee Drag
92	Mega-Fund (2.5 & 25)	2.5%	25%	1.5%	2.12x	0.38x
93	Traditional Fund (2 & 20)	2.0%	20%	1.0%	2.18x	0.32x
94	Club Deal (1.0 & 15)	1.0%	15%	0.5%	2.31x	0.19x
95	Independent Sponsor (0.75 & 12)	0.75%	12%	0.25%	2.35x	0.15x
96	Co-Invest (0.5 & 8)	0.5%	8%	0.0%	2.41x	0.09x
97
98
99
100