Hurdle Rate

Definicja

A hurdle rate is the minimum return a fund must deliver to investors before managers earn carried interest, commonly around 8 percent in private funds.

Jak pojawia się w pozyskiwaniu finansowania

Hurdles align incentives: GPs profit only after LPs receive their capital plus the preferred return.

Często zadawane pytania

Do venture funds always have hurdle rates?

They are more universal in private equity; many VC funds have no hurdle, though LP pressure has made them more common.

How does a hurdle affect founder interactions?

Indirectly: funds behind on their hurdle late in life may push portfolio companies harder toward exits.

Wykorzystaj ten termin

Definicje wygrywają negocjacje tylko wtedy, gdy w nich uczestniczysz. Znajdź inwestorów, którzy finansują Twój etap i rozpocznij rozmowę.

Przeglądaj bazę inwestorów