Forte founders in April 2001
Evaluate the situation facing the Forte founders in April 2001 and the Private Placement Memorandum (PPM) (Appendix A) prepared to convince institutional investors to invest.
- What should Maclean Palmer and his partners do and why?
- What are the economics of the venture capital business? Assume that Forte is a “top quartile” fund in terms of performance. What will the cumulative pay checks and distributions to the limited partners and the general partners be over 10 years?