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 $200M fund as a case study. Management fees typically represent 2% of fund size, with the majority going to partner salaries, office expenses, and staff costs, while surplus is retained by managing partners. The article highlights the significant 'fee drag' that reduces net returns to investors.
Metrics in this report
Annual Management Fee
5,000,000$
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