2113. Fund D has $500M in committed capital with 20% carried interest where carry basis is all committed capital. The partnership agreement requires priority return of 10% with 100% catch- up. Suppose all committed capital is drawn down on the first day of the fund. Total exit proceeds are S800M. Suppose also that S540M of these proceeds come at end of year 1, $70M in year 2 and remainder in year 3. a) How much will LP and GP receive in each of year 1, 2 and 3 under catch-up provision? You will need to use some words to provide explanation. Year 1 LP Year 1 GP Year 2 LIP Year 2 GP Year 3 LIP Year 3 GP b) How much will GP's total carry be with no catch-up provision? 2113. Fund D has $500M in committed capital with 20% carried interest where carry basis is all committed capital. The partnership agreement requires priority return of 10% with 100% catch- up. Suppose all committed capital is drawn down on the first day of the fund. Total exit proceeds are S800M. Suppose also that S540M of these proceeds come at end of year 1, $70M in year 2 and remainder in year 3. a) How much will LP and GP receive in each of year 1, 2 and 3 under catch-up provision? You will need to use some words to provide explanation. Year 1 LP Year 1 GP Year 2 LIP Year 2 GP Year 3 LIP Year 3 GP b) How much will GP's total carry be with no catch-up provision