Originally Posted by
WasKnown
It is innately rare (that's why they are tier 1 funds) but they empirically exist, especially in VC. The *net* IRR for the last 3 USV funds is in excess of 40% for each. GGV's is even higher. Again, even fund of funds like HBP (which has a long history of delivering a net IRR in excess of 20%) can do well.
Of course there will be some VC funds and some funds-of-funds that hit it out of the park for the life of the funds. One huge hit in the portfolio, like one of what are now tech giants, can do that. But of course there are loads of dud funds in the sector. Good luck trying to pick the ones that consistently return anything like 40%.