diarrheaplanet
New Member
- Joined
- Jun 26, 2016
- Messages
- 15
Hey guys!
Been busting my head trying to do something in Excel; but haven't been able to reach a satisfactory procedure.
So here's the case, on bullets:
1) We have to open a fund to handle our investments. Each fund has a cost of $15,000 for opening, and each one can handle twenty investments
2) On each investment, an infinite number of investors can invest; yet, we don't expect the number of investors to exceed 20 per investment
3) Each investor invests $50,000 on average
3) For every investor that participates in one investment, the fund charges us $2,000 to register him
4) Also, the fund charges us 1.5% of the total amount raised per investment, to handle each investment
5) For each investment, we charge a 8% fee of the total raised
6) We also have fixed costs per month of around $300k
7) The 8% that we charge should be able to cover all the costs from the fund and our fixed costsBasically, that's the standard workings of the fund, yet; given that we're a new client and they'd like to work with us, that told us we could propose a cost structure that would benefit us the most. What I've been playing with is, leaving out the $2,000 registration fee, or leaving out the 1.5% fee from funds raised. Or, seeing if maybe it's better to offer them a higher % fee of funds raised but leave out the $2,000 fee.
I would like to determine what would be the optimal scenario that would help us cover our fees (Ex: You need 15 investors, investing 70k each, and getting charged only 1% from the fund to be able to cover the costs).
Been trying to run a few data tables, but since there are so many variables, I've gotten a bit stuck in my analysis. The other thing I thought about was maybe using NORMINV function to create a portfolio and a statistical distribution and optimize the structure using solver.
Any ideas appreciated, I could also share what I've been working on so far.
Many thanks!
Been busting my head trying to do something in Excel; but haven't been able to reach a satisfactory procedure.
So here's the case, on bullets:
1) We have to open a fund to handle our investments. Each fund has a cost of $15,000 for opening, and each one can handle twenty investments
2) On each investment, an infinite number of investors can invest; yet, we don't expect the number of investors to exceed 20 per investment
3) Each investor invests $50,000 on average
3) For every investor that participates in one investment, the fund charges us $2,000 to register him
4) Also, the fund charges us 1.5% of the total amount raised per investment, to handle each investment
5) For each investment, we charge a 8% fee of the total raised
6) We also have fixed costs per month of around $300k
7) The 8% that we charge should be able to cover all the costs from the fund and our fixed costsBasically, that's the standard workings of the fund, yet; given that we're a new client and they'd like to work with us, that told us we could propose a cost structure that would benefit us the most. What I've been playing with is, leaving out the $2,000 registration fee, or leaving out the 1.5% fee from funds raised. Or, seeing if maybe it's better to offer them a higher % fee of funds raised but leave out the $2,000 fee.
I would like to determine what would be the optimal scenario that would help us cover our fees (Ex: You need 15 investors, investing 70k each, and getting charged only 1% from the fund to be able to cover the costs).
Been trying to run a few data tables, but since there are so many variables, I've gotten a bit stuck in my analysis. The other thing I thought about was maybe using NORMINV function to create a portfolio and a statistical distribution and optimize the structure using solver.
Any ideas appreciated, I could also share what I've been working on so far.
Many thanks!
