European Tech & Life Sciences Fund of Funds
Partner Presentation - Financial Modeling Assumptions
Explore StrategyManagement Fee: 1% declining to 0.5%
Carried Interest: 10%
Hurdle Rate: 8%
Fund Life: 10+3 years
Target AUM: €50M
Per VC Investment: €2.5M - €3.5M
Portfolio Size: 15-20 VC funds
Geographic Focus: European Tech & Life Sciences
Minimum Ticket: €150K
Target Investors: 50-120
Mix: 50% HNWI, 40% Family Offices, 10% Others
Geography: UAE, Singapore, Hong Kong
Target Net IRR: 12-15%
Target TVPI: 2.0-2.5x
VC Selection Criteria: Min 10% Net IRR
Reporting: Quarterly NAV & Statements
Lumen positions itself as a European tech and life sciences focused Fund of Funds, targeting €50M AUM through a Luxembourg RAIF/SCSp structure with Cayman feeder capabilities. The fund addresses growing demand from UAE, Singapore, and Hong Kong-based family offices and HNWIs seeking diversified exposure to European venture capital.
With a minimum €150K ticket and €5M commitments per VC fund, Lumen aims to provide institutional-quality access to top-tier European VCs while maintaining operational efficiency. The fund's speed-to-market approach and cost-conscious structure capture current market opportunities.
The proposed fee structure balances competitiveness with operational sustainability: 1% management fees stepping down to 0.5% over three-year periods, coupled with 10% carried interest above an 8% hurdle rate, aligning with market standards.
The phased closing approach (€30M in 2026, €20M in 2027) allows strategic capital deployment across 15-20 VC funds, with individual commitments of €2.5-3.5M, providing meaningful exposure while mitigating concentration risk.
Luxembourg RAIF/SCSp structure establishment with Cayman feeder fund preparation
Active marketing to family offices and HNWIs across UAE, Singapore, and Hong Kong
Initial closing with anchor investors and early commitments
Final closing reaching target AUM with full investor base
| Assumption | Value | Rationale |
|---|---|---|
| Fee Structure | ||
| Management Fees | 1% declining to 0.75% to 0.5% (3-year periods) | Market-competitive structure that reduces fees as fund matures |
| Carried Interest | 10% | Below typical 20% GP carry, appropriate for FoF structure |
| Hurdle Rate | 8% | Attractive hurdle providing downside protection while achievable |
| Catch-up | 100% | Standard provision ensuring GP receives full carry once hurdle exceeded |
| Investment Parameters | ||
| Target AUM | €50M | Optimal size for European FoF providing meaningful diversification |
| Investment per VC | €2.5M - €3.5M | Sufficient size for meaningful allocation while enabling diversification |
| Number of VC Funds | 15-20 | Optimal diversification across vintages, stages, and geographies |
| Minimum Investor Ticket | €150K | Accessible to target HNWI segment while maintaining efficiency |
| Performance Targets | ||
| VC Selection Net IRR | Minimum 10% consistently | Conservative target ensuring quality selection criteria |
| Target Net IRR | 12-15% | Realistic target considering fees and European VC market conditions |
| Target TVPI | 2.0-2.5x | Based on underlying VC fund performance expectations |
| Operational Framework | ||
| Capital Calls | 10-15 over fund life | Aligned with underlying VC fund capital call schedules |
| Notice Period | 10-20 business days | Standard notice providing adequate time for investor liquidity planning |
| Reporting Frequency | Quarterly | Comprehensive investor reporting including underlying fund performance |