Question
Assume Cambridge Ventures raises $10,130,000 for a private equity fund with a one-year life. The fund has a hurdle rate of 6 percent, above which
Assume Cambridge Ventures raises $10,130,000 for a private equity fund with a one-year life. The fund has a hurdle rate of 6 percent, above which it earns a carried interest of 20 percent. If Cambridge generates a return of 16 percent, what is the firms carried interest for the year?
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Cases in Finance
Authors: Jim DeMello
3rd edition
1259330476, 1259330478, 9781259352652 , 978-1259330476
