New recycling options

New recycling options rolled out in the Venture Capital Model, Annual Forecast in parallel with an edit to the investment deployment forecasting methodology.

Instead of a percentage of management fees recycling option, the model now offers a new set of assumptions on Get Started to more closely align with the options typical in fund LPAs (limited partnership agreements). The new recycling subroutine calculations on the Forecast sheet detail the potential recycling per period with each option, and help users understand how different recycling options impact cash flows.

In addition, the structure for forecasting invested capital was changed to match up the timing of recycled capital with investments, which will make the cash deployment and budgeting clearer and easier. A new output on Get Started reports the Budgeted Invested Capital separate from the proceeds that are recycled into investments, and the Called Capital and New Investments lines on the Forecast sheet were edited to reflect a different approach to budgeting for investments.

These edits will also help the model be a better fit for private equity funds and evergreen funds.