Consider the following data for a 10 year EU closed-end fund: size of the fund 600 million euro; carried interest 30%; hurdle rate 8%; value of the fund at the end (i.e., cash in bank account) 1.950 million euro. If the fund yearly IRR (without catch up) is 12,5%, it is possible to calculate as carried interest for managers:

correct aswer is 86,29 mln

can you explain me how to get to the solution considering that

- CI formula = CI rate%(final IRR- Hurdle)

- Yearly irr -> initial amount = final amount/(1+year IRR)^(n years)