Demystifying the cascade of fees: what would your net return be with Crescenta?

When seeing gross, net, with fees, after fees... it's easy to get lost and ask yourself: but, how much do I receive as an investor?

At Crescenta fees vary according to the amount you commit to investing. The higher the amount, the lower the fees, as the costs are optimised. In order to explain how they affect your final return, that is, what you end up receiving, we have carried out a simulation considering a baseline and linear scenario*.

Imagine that you make an investment commitment of €100,000 to the Crescenta Private Equity Growth Top Performers I fund, which has a target return of 18%(IRR), a target MOIC of 2.5x and an investment time horizon of 10 years.

You would gradually disburse the €100,000 in the first five years. As of the fifth year, you would start receiving the distributions (your amount invested plus the gains).

In a baseline and linear scenario, we would expect an annualised return without fees (gross) of 22.38% and an MOIC of 2.5. In other words, you would receive €250,000, gross.

Once we charge the fees for this investment commitment, you would receive €235,000, net, with an IRR of 20.19% and an MOIC of 2.3x.

Regardless of the amount you commit, we expect returns higher than 15% in our funds.

For an investment commitment of €100,000, we charge three types of fees:

• Subscription Fee (0%): it is charged over the investment commitment in the first capital call.

• Management fee (1.25% or 0.94% with the Early Birds discount): an annualised fee over the total assets committed is charged during the investment period. Once the investment period has ended, we charge an amount over the assets invested minus the distributed amount.

• Success fee (5%): it is only charged if the fund exceeds 8% of the annual return. It is charged over the total success achieved.

*All projections or other estimates appearing in these documents, including profitability estimates, are predictions based on factors beyond the control of Crescenta and are not binding in nature.

The information included in this post has not been approved by the National Securities Market Commission. This post has been produced for information purposes only. Neither this post nor its content constitute an offer, request or invitation to purchase, an investment agreement or commitment or any kind of decision. This post neither constitutes specific investment advice to purchase or sell an investment or to subscribe any investment contract or any other financial service, nor does it involve any advice or recommendation on tax-related matters. We recommend that any tax-related decision is consulted with lawyers and/or tax advisors.

You should not use this post as a basis for making your financial decisions. All forecasts, opinions, estimates and projections included in this post constitute a judgment reached by Crescenta or of renowned third parties, and they are provided solely for illustrative purposes. These forecasts, opinions, estimates and projections involve known and unknown risks, uncertainties and other factors that can make the actual results, performance or achievements materially different from the future results, performance or achievements expressed or implied in such forecasts, opinions, estimates and projections.

Past performance is not indicative of future returns. The value of the investments and the income derived therefrom can increase or decrease, and you may not recover the invested amount. Private Capital investments can give rise to a series of risks that investors must be able to assess.

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Crescenta