Investment Calculator
Estimate potential returns on healthcare private equity investments. Adjust parameters to explore different scenarios.
Investment Parameters
Veracor Capital funds feature an 8% preferred return hurdle. Investors receive priority distributions before carried interest applies.
Projected Results
$796,368
$546,368
3.19x
$20,000
Important Disclaimer
These projections are hypothetical and for illustrative purposes only. Actual returns may be higher or lower. Private equity investments involve significant risk including potential loss of principal. Past performance does not guarantee future results. See offering documents for complete terms.
Compare Investment Scenarios
See how different holding periods and return assumptions affect your potential outcomes.
| Scenario | IRR | 5-Year Value | 7-Year Value | 10-Year Value |
|---|---|---|---|---|
| Conservative | 12% | $440,585 | $552,670 | $776,462 |
| Target | 18% | $571,939 | $796,368 | $1,308,459 |
| Optimistic | 25% | $762,939 | $1,192,093 | $2,328,306 |
* Based on $250,000 initial investment. Projections are hypothetical.
Asset Class Comparison
See how private equity historically outperforms traditional investments—and why institutional investors allocate 20-40% to alternatives.
10-Year Average Annual Returns by Asset Class
$250,000 Invested Over 10 Years
Compounding effect comparison between traditional and alternative investments
- 60/40 Portfolio
- S&P 500
- Veracor Target
60/40 Portfolio
$515,258
S&P 500
$678,520
Veracor Target
$1,308,459
The Illiquidity Premium
Private equity's higher returns come partly from the "illiquidity premium." By locking capital for 7-10 years, investors access opportunities unavailable in public markets and avoid panic selling during volatility.
The Yale Endowment Model
Yale's legendary endowment allocates 40%+ to alternatives. Harvard, Stanford, and major pension funds follow similar strategies—because private equity has historically outperformed public markets by 3-5% annually.
The Access Gap
Until recently, private equity was exclusive to institutions and ultra-wealthy families. Accredited investors now have access to the same strategies that have built generational wealth for decades.
Complete Asset Class Comparison
Based on $250,000 initial investment
| Asset Class | Avg Return | Risk Level | Liquidity | Min Investment | 10-Year Value |
|---|---|---|---|---|---|
| Savings | 0.5% | Very Low | High | $0 | $262,785 |
| Gov't Bonds | 2.5% | Low | High | $1K | $320,021 |
| Corp Bonds | 4.5% | Low-Med | High | $1K | $388,242 |
| S&P 500 | 10.5% | Medium | High | $0 | $678,520 |
| REITs | 9% | Medium | Medium | $500 | $591,841 |
| 60/40 Portfolio | 7.5% | Medium | High | $0 | $515,258 |
| Private Equity | 15% | Higher | Low | $250K+ | $1,011,389 |
| Healthcare PE | 18% | Higher | Low | $250K+ | $1,308,459 |
| Veracor Target | 18% | Higher | Low | $250K | $1,308,459 |
Important Information About Return Projections
Historical returns shown represent approximate 10-year averages and are provided for educational purposes only. Past performance does not guarantee future results. S&P 500 returns based on historical index data; private equity returns based on Cambridge Associates and Preqin industry benchmarks.
Private equity investments involve substantial risk including potential loss of principal, illiquidity, and long lock-up periods. These investments are suitable only for accredited investors who can bear the risk of loss. Consult offering documents for complete terms, fees, and risk disclosures.
Calculator FAQ
How accurate is this investment calculator?
This calculator provides illustrative projections only. Actual returns will vary based on fund performance, market conditions, and other factors. Past performance does not guarantee future results. Consult offering documents for specific fund terms.
What is IRR (Internal Rate of Return)?
IRR measures the annualized rate of return on an investment, accounting for the timing of cash flows. It's a standard metric for comparing private equity investments and represents the discount rate that makes the net present value of all cash flows equal to zero.
What is MOIC (Multiple on Invested Capital)?
MOIC represents the total value returned to investors divided by the capital invested. A 2.0x MOIC means you received $2 for every $1 invested. MOIC doesn't account for the time value of money, so it's typically used alongside IRR.
How does private equity compare to the S&P 500?
Historically, private equity has outperformed public markets by 3-5% annually over long periods. According to Cambridge Associates and Preqin data, top-quartile PE funds have delivered 15-20%+ net IRR compared to the S&P 500's ~10% average. However, PE involves illiquidity and higher risk.
Why do institutional investors allocate to alternatives?
Major endowments like Yale and Harvard allocate 30-40% to alternatives including private equity. This 'endowment model' seeks higher risk-adjusted returns through the illiquidity premium—accepting reduced liquidity in exchange for access to private market opportunities not available through public stocks and bonds.
What is the illiquidity premium in private equity?
The illiquidity premium refers to the additional return investors may earn for committing capital to investments that cannot be easily sold. By accepting 7-10 year lock-up periods, PE investors gain access to operational improvements, strategic acquisitions, and value creation not possible with liquid public market investments.