Vsp Foundation Certification Evaluation Questions And Solutions Study Guide

VSP FOUNDATION CERTIFICATION
EVALUATION QUESTIONS AND SOLUTIONS
STUDY GUIDE

●● GP
Answer: General Partner - the VC firm/individuals who manage the
fund, make investment decisions, and are personally liable for the fund's
obligations


●● AUM
Answer: Assets Under Management - the total market value of the
investments a fund manages


●● DPI
Answer: Distributions to Paid-In Capital - a ratio measuring actual cash
returned to LPs relative to what they've invested (realized returns)


●● TVPI
Answer: Total Value to Paid-In Capital - a ratio measuring total value
(realized + unrealized) relative to capital invested


●● RVPI

, Answer: Residual Value to Paid-In Capital - a ratio measuring the
unrealized (still-held) value of a fund relative to capital invested


●● IRR
Answer: Internal Rate of Return - the annualized rate of return on an
investment, accounting for the timing of cash flows


●● MOIC
Answer: Multiple on Invested Capital - how many times an investment's
current value is relative to the amount originally invested


●● Carry
Answer: Carried Interest - the share of a fund's profits (typically ~20%)
that GPs receive as compensation, on top of management fees


●● Mgmt Fee
Answer: Management Fee - the annual fee (typically ~2% of AUM) LPs
pay a fund to cover operating costs, regardless of performance


●● GP Commit
Answer: General Partner Commitment - the portion of the fund's capital
that the GPs themselves invest, aligning their incentives with LPs


●● FoF