The Economics
Calculator

Model your capital aggregation strategy, understand fund manager economics, and calculate exactly how much capital you need to replace your salary.

$1,000,000
$672,308
10.8%
$465,165
100.0×

Investor Return Simulator

Investors normally need $250K to access higher return tiers. Through capital aggregation, smaller investors can receive the same institutional pricing.

$
%

Capital from this tier

$100,000

$
%

Capital from this tier

$400,000

$
%

Capital from this tier

$500,000

%

The return the fund of funds receives from underlying investments

years

Number of years the investment is held

TierInvestorsCapitalReturnProfit
T110$100,0008.0%$46,933
T28$400,00010.0%$244,204
T35$500,00012.0%$381,171
TOTAL$1,000,00010.8%/yr$672,308

Fund Manager Economics

Understand the income streams available to a fund manager who aggregates capital — from due diligence fees to carried interest.

%

Upfront fee charged as a % of total capital raised — collected in Year 1 only

%

Annual fee charged on assets under management — standard is 1% per year

%

Percentage of investor profits retained by the fund manager — standard range is 5–10%

$
$
Total admin over 5 years: $15,000
Total Capital Raised
$1,000,000
Due Diligence Fee IncomeYear 1 only
$20,000
Annual Management Fee (1% AUM)5-yr total
$50,000
Spread Income (Fund Return − Investor Return)Over 5 yrs
$339,050
Carry IncomeOver 5 yrs
$33,615
Expense ReimbursementFrom gross profit
$22,500
Net Manager Profit5-year total
$465,165
YearDD FeeMgmt FeeNet
Yr 1$20,000$10,000$87,900
Yr 2$0$10,000$71,819
Yr 3$0$10,000$85,417
Yr 4$0$10,000$101,569
Yr 5$0$10,000$120,716
TOTAL$20,000$50,000$465,165
$20,000

2% of $1,000,000

$339,050

15% fund − investor rates

$33,615

5% of investor profits

$22,500

Setup $7,500 + Admin $15,000

Income Replacement Calculator

Work backwards from your current salary to build a clear capital-raising strategy. This calculator shows exactly how much capital you need to raise — and how many investor closes that requires per year — to replace your income using all three manager income streams.

$
$

Used to calculate how many investors you need

Rates pulled from Sections 1 & 2:

Fund return: 15%  |  Blended investor return: 10.8%  |  DD fee: 2%  |  Mgmt fee: 1%/yr  |  Carry: 5%  |  Hold: 5 yrs

$2,197,016

Raise this once — your income over 5 years equals your target salary

Annual raise target: $2,197,016/yr  ·  44 closes/yr at $50,000 avg

DD Fee Income

$43,940

Annual Management Fee (1% AUM)

$109,851

Spread Arbitrage Income

$750,116

Carry Income

$73,593

Expense Reimbursement

$22,500

Net Income (= 5-Year Salary Total)

$890,149
YearDD FeeMgmt FeeNet / Yr
Yr 1$43,940$21,970$180,549
Yr 2$0$21,970$154,197
Yr 3$0$21,970$184,071
Yr 4$0$21,970$219,559
Yr 5$0$21,970$261,625
TOTAL$43,940$109,851$890,149

To replace $200,000/yr, you need to raise $2,197,016 in new capital each year over your 5-year fund cycle.

$2,197,016

capital to raise per year

11

investors at $50,000 avg

4

investors at $50,000 avg

Inv. SizeCloses/yrCloses/qtrCloses/mo
$25,00088228
$50,00044114
$100,0002262
$50,000your avg44114

Total investors needed for the full 5-year fund of $2,197,016, using all income streams

Inv. SizeInvestorsMgr Income
$25,00088$846,328
$50,00044$846,328
$100,00022$846,328
$50,000custom44$846,328

See exactly at which fund size you replace your $200,000/yr salary. Rows at or above your target are highlighted.

Fund SizeAvg Annual Incomevs. Salary
$1.0M$93,484
47%
$2.0M$182,469
91%
$3.0M✓ TARGET$271,453
136%
$5.0M✓ TARGET$449,422
225%
$7.5M✓ TARGET$671,883
336%
$10.0M✓ TARGET$894,343
447%