You have a fund with $490,000,000. You make 100 investments of $4,900,000 each.
40% of those investments fail outright. 10% achieve significant growth. That means that you lose your shirt on
40 companies,
don't lose money on 50 investments
and achieve breakout growth on 10 investments.
When you take an average of the successful ones you find that your investment in only those firms increased in value 99.5 times what you invested.
💰 That means you made $4,875,500,000, and your exit multiple is 9.95x. Good job! (As long as it was way above 1x, better if it's above 5x, otherwise bad job.) 👍👍👍🇺🇸🇺🇸🇺🇸