fund-modeling
$ npx skills add https://github.com/vcskills/fund-modelingFund Modeling
Build, maintain, and stress-test fund financial models including returns waterfall, LP economics, and DPI/RVPI/TVPI projections.
Quick Start
Use this skill when:
- You are designing a new fund's economic structure and need to model LP returns
- You are stress-testing portfolio construction assumptions
- LPs are asking for projected return scenarios ahead of a close
- You need to update the fund model with latest portfolio marks
- You are modeling the impact of a management fee or carry change
How It Works
Fund Modeling takes a set of fund parameters as inputs and builds a full financial model: capital deployment schedule, portfolio construction (number of investments, initial vs. reserve split, ownership targets), and exit timing assumptions.
The model calculates gross returns at the portfolio level, then applies the fee and carry structure to produce net LP returns. Outputs include IRR, MOIC, DPI, RVPI, and TVPI at every vintage year.
Portfolio Construction Scenarios
Define 3–5 portfolio construction scenarios varying concentration, stage mix, and reserve ratios. For each scenario, the model projects expected outcomes using historical return distributions calibrated to your sector and stage focus.
Scenario outputs are displayed side-by-side so the partnership can evaluate the risk/return tradeoffs of different construction philosophies before finalizing the fund strategy.
Waterfall Mechanics
The waterfall engine models European and American waterfall structures, preferred return (hurdle rate), and GP catch-up provisions. It handles recycling provisions, management fee offsets, and deal-by-deal vs. whole-fund carry. Outputs match standard LP agreement definitions so the model can be shared directly with fund counsel for review.