The Crimson Bench

ProFundraising · Simulator

Fund "2 and 20" Simulator

How a fund manager makes money.

Assumptions

Management fee

$2,000,000

Carried interest

$3,000,000

Total GP revenue

$5,000,000

LineAmount
Management fee$2,000,000
Gross profit$15,000,000
Carry$3,000,000
Total GP revenue$5,000,000

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Every row, plus Excel/PDF export and AI analysis.

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Toolkit Pro

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Built by The Crimson Bench · Educational model, not financial advice

About the Fund "2 and 20" Simulator

Model AUM with a management fee and carried interest to see the GP’s annual economics.

It's built for directional planning: change any assumption and watch the whole projection move, the way a seasoned operator pressure-tests a plan before committing capital. Everything is computed live in your browser — nothing is sent anywhere.

How the Fund "2 and 20" Simulator Works

The model takes 4 assumptions and returns 3 headline metrics plus a full breakdown. Here is exactly what goes in and what comes out — no black box.

The Inputs

AssumptionExample value
Assets under management$100,000,000
Management fee2%
Carried interest20%
Gross return15%

Worked Example

Every figure below is produced by the live model using the example assumptions above. Change any input in the simulator to see your own numbers.

Management fee

$2,000,000

Carried interest

$3,000,000

Total GP revenue

$5,000,000

LineAmount
Management fee$2,000,000
Gross profit$15,000,000
Carry$3,000,000
Total GP revenue$5,000,000

The Operator's Read

"2 and 20" — the management fee covers operations and pays regardless of performance, while the carry is the real upside. On a large fund, the fee alone is enormous, which is why raising a bigger fund is every manager's goal. Educational only.

Assumptions & Limitations

  • The model is deterministic: it projects your inputs forward with clear arithmetic, not a Monte-Carlo or probabilistic forecast. It shows one scenario at a time — run several to bracket a range.
  • Defaults are illustrative benchmarks, not your business. Replace every field with your real numbers before drawing conclusions.
  • It abstracts away taxes, financing, seasonality, and one-off events unless a field explicitly captures them. Treat the output as a directional estimate.
  • This is an educational tool, not financial, investment, tax, or legal advice. Validate real decisions with a qualified professional.

Frequently Asked Questions

What does the Fund "2 and 20" Simulator calculate?

Model AUM with a management fee and carried interest to see the GP’s annual economics. It takes 4 assumptions — Assets under management, Management fee, Carried interest, Gross return — and returns Management fee, Carried interest, Total GP revenue, along with a full projection table you can export.

How do I use the Fund "2 and 20" Simulator?

Enter your own figures in the input fields above — Assets under management, Management fee, Carried interest, and the rest. The model recalculates instantly and shows the resulting Management fee and full breakdown. No sign-up needed to run it.

Is the Fund "2 and 20" Simulator free?

Yes — you can run the simulator and see the headline results for free. Toolkit Pro unlocks the full projection table, Excel/PDF export, saved scenarios, and AI analysis: $180/mo, $1,728/yr, or unlock any 3 simulators for $20.

What's the difference between this and a free calculator?

A calculator answers one question. This simulator models the full picture — multiple linked assumptions, a projection table, and scenario comparison — the way an operator would build it in a spreadsheet, but instantly.

Who built the Fund "2 and 20" Simulator?

The Crimson Bench's Ivy League-educated operators — the same people we deploy into C-suites. This is the self-serve version of a model they'd build inside a live engagement.

Is this financial advice?

No. The Fund "2 and 20" Simulator is an educational modeling tool for directional planning — not financial, investment, tax, or legal advice. Validate any real decision with a qualified professional.

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The Crimson Bench · Est. 2002 · Founded in New York City

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