A private equity fund pays the general partners a 20% carried interest. The carried interest has a 100% catchup, and the limited partners are entitled to an 8% preferred return. The fund has $250 million in committed capital. In year 3, the fund sells its first investment for $17 million. It had invested $15 million. The holding period is 2 years. How are the year 3 profits allocated between the general partner and the limited partners? A private equity fund pays the general partners a 20% carried interest with 100% catchup, and the limited partners are entitled to an 8% preferred return. The fund has $250 million in committed capital. In year 3, the fund sells its first investment for $13 million. It had invested $15 million. In year 4, it sells its second investment for $27 million. It had invested $20 million. The holding period for each investment is 2 years. How are the year 4 profits allocated between the general partner and the limited partners?