Modeling: Case Study

Future Vision Fund is a venture capital firm investing in start-up companies. They’ve reached the end of their fund life-cycle and now want to distribute the proceeds to their limited partners.

Their partners are classified along 3 classes – General Partner (Class A), DMPC (Class B) and MSPC (Class C).

The distribution ratio depends upon the drawdown amount for MSPC.

Till the time distribution proceeds for MSPC are 1.5 times drawdown for MSPC, the distribution proceeds would be in the Preliminary Ratio – 10%, 40%, 50%.

Till the time distribution proceeds for MSPC are 1.7 times drawdown for MSPC, the additional distribution proceeds would be in the Secondary Ratio – 20%, 40%, 40%.

Additional distribution proceeds to be in the Tertiary Ratio – 30%, 20%, 50%.

Create a model that calculates the distribution proceeds for each class, given the following inputs:

1. MSPC Drawdowns

2. Total Amount to be distributed

Some pointers:

1. We evaluate submissions on the basis of the correctness and elegance.

2. Please mention the time it took you to complete the assignment.