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A venture capital fund is organized as a limited partnership. The fees for the general partners are 2.0% of the beginning of year AUM and
A venture capital fund is organized as a limited partnership. The fees for the general partners are 2.0% of the beginning of year AUM and the carried interest is 20% of the excess of gross return over a threshold return of 9%. Given the AUM is $100 million at the beginning of the year and gross return over the year is 30%, what is the dollar amount of compensation earned by the general partners over the year? Express your answer in millions to two significant digits. $6.72 million should be expressed as 6.72.
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