Hacker News new | ask | show | jobs
by icewalker 4524 days ago
It's definitely not a total win - first, the return isn't actually ~50% given the $365M in installment payments and assumed unvested equity; second, your LPs committed capital to your fund expecting a certain IRR over the length of the fund (7 years i'm guessing? 10?). Getting them a low- to mid-double digit IRR over 1 year is nice, but it also means that they now have to spend money figuring out how to redeploy that capital for the next 6 years.
2 comments
foobarqux 4524 days ago
That's not how VC/PE typically works. Exit capital is returned, not reinvested.
link
icewalker 4523 days ago
Sorry I wasn't clear with my pronouns (?) - "they" referred to the LPs, not Insight. Meaning that now the LPs (not Insight) have to figure out how to reinvest the capital that was returned.
link
smtddr 4524 days ago
lol. Oh boo-hoo, I have all this extra money sitting around that I didn't plan to have for at least 6 years and I need to figure out how to use it. Woe is me, woe is me. ;)

But yeah, I do get what you're saying about having capital that isn't properly invested = loss of potential gains... I guess. Very first-world problem though :)

link