7. A private equity fund pays the gencral partner a 20% carried interest. The carried interest feature has a 100% catch-up fearure. The limited partners are entitled to an 8% per year preferred return on their investment in the fund. Calculate the share of profits (or losses) allocated to the general partner and the limited partners in year 5 and year 6 based on the following assumptions. The fund has $250 million in net invested capital. In year 5 , the fund sells its first investment, generating $50 million in the sale. The fund invested $25 million in the company. In year 6 , the fund sells its second investment, generating $40 million in proceeds. The original equity investment was $50 million. Assume the holding period for each investment is two years and that there have not been any other divestitures, dividends, or recapitalizations. 7. A private equity fund pays the gencral partner a 20% carried interest. The carried interest feature has a 100% catch-up fearure. The limited partners are entitled to an 8% per year preferred return on their investment in the fund. Calculate the share of profits (or losses) allocated to the general partner and the limited partners in year 5 and year 6 based on the following assumptions. The fund has $250 million in net invested capital. In year 5 , the fund sells its first investment, generating $50 million in the sale. The fund invested $25 million in the company. In year 6 , the fund sells its second investment, generating $40 million in proceeds. The original equity investment was $50 million. Assume the holding period for each investment is two years and that there have not been any other divestitures, dividends, or recapitalizations