Estimate how much of carried interest the sponsor of the new venture could carve out for himself.
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Estimate how much of carried interest the sponsor of the new venture could carve out for himself.
If the equity investor requires a 15% return on her investment, then the sponsor of the deal could carve out up to 3.73% of the deal, which is the difference between the IRR and investor’s hurdle rate (18.73%
15%).
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Related Book For
Hospitality Financial Management
ISBN: 9780471692164
1st Edition
Authors: Agnes L DeFranco, Thomas W Lattin
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