Calculation of carried interest Suppose that a LBO fund has committed capital of $ 100 million, carried interest of 20%, and a hurdle rate of 8%. The fund called 75% of its commitments from investors at the beginning of year 1, which was invested at the beginning of the year 1 in target company A for $ 40 million and target company B for $ 35 million. Suppose that at the end of year 2. a profit of $ 5 million has been realized by the GP upon exit of the investment in company A. hot th GR is entitled to carried interest on a deal-by-deal basis, how much