Fund Economics Report 2025

The details of how private funds operate have always remained behind the curtain. Now, Carta provides a never-before-seen glimpse at how VC and PE investors manage and operate their funds.

Report Highlights

• PE fund managers have more skin in the game: In venture capital, the median fund manager makes a GP entity commitment totaling 1.7% of the fund size. In private equity, the median GP entity commitment is 50% higher, at 2.55%.
• Most capital calls are fulfilled on time: Across all recent fund VC vintages, at least 75% of capital calls to LPs are fulfilled at or prior to the given deadline. The longer the notice period given for a capital call, the more likely LPs will wire the capital earlier than requested.
• Venture funds from 2022 are spending more slowly: After nearly four years, the median 2022 vintage VC fund had deployed 67% of its capital. Most other recent vintages had deployed around 80% of their capital at the same threshold in time.
• Management fees and carry rates have remained steady: Across all recent VC vintages, the 2-and-20 fee structure remains the norm, with a median management fee during the investment period of 2% and the median GP taking 20% of a fund’s profits in carried interest.
• Venture funds benefit from economies of scale: The median VC fund between $1 million to $10 million spends about 3.4% of its fund size on operating expenses within the first five years. The median fund larger than $100 million only spends 1% of its fund size on expenses in the same time frame.

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