10-year private equity fund had $200 million of committed capital, annual management fees of 2% of committed...
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Question:
10-year private equity fund had $200 million of committed capital, annual management
fees of 2% of committed capital during its whole life. Assume that by the end of year 6, the fund has
invested $100 million. The fund realizes its first exit at the end of year 6 for $120 million of total
proceeds. Assume there is no hurdle and that carried is 20% of capital gains and calculated the
European way.
a. Should the GP get a carried and if so, of how much?
b. Same question assuming the exit is for $130 million?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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