Question
Assume a private equity firm raises a $9.4 billion buyout fund and charges a management fee of 1.07%. Calculate the present value of the management
Assume a private equity firm raises a $9.4 billion buyout fund and charges a management fee of 1.07%. Calculate the present value of the management fees (in millions) to the private equity firm assuming a 9 year life for the fund, no change in its value and a 8.3% discount rate.
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Engineering economy
Authors: Leland Blank, Anthony Tarquin
7th Edition
9781259027406, 0073376302, 1259027406, 978-0073376301
