SaaStr · 2015-10-04 · 3895d

Venture Capital Firm Operational Budget Breakdown: $200M Fund Example

This article explains how venture capital firms structure their operational budgets, using a $200M fund as a case study. Management fees typically represent 2% of fund size, with the majority going to partner salaries, office expenses, and staff costs, while surplus is retained by managing partners. The article highlights the significant 'fee drag' that reduces net returns to investors.

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Metrics in this report

Annual Management Fee

5,000,000$

example

$200M fund at 2.5%

Associate Staff Cost

800,000$

annual

2 associates at $400k/year burdened

EA Staff Cost

600,000$

annual

3 EAs at $200k/year burdened

Management Fee Rate

2%

median

of total fund size per year

Office Rent

600,000$

annual

premium South Park office, $50k/month

Partner Collective Salary

1,500,000$

example

3 GPs in $200M fund

Partner Dividend Surplus

1,300,000$

example

remaining after $200M fund expenses

Partner Salary Range

2-3%

range

of total fund size collectively

Professional Services Cost

500,000$

annual

CFO, audit, accounting, legal, admin

Travel and Miscellaneous

500,000$

annual

travel, marketing, IT expenses