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Consider the following scenario. Bain Fund XI (assume fund size of $6B) invests $300M in a company on the first day of its first year.

Consider the following scenario. Bain Fund XI (assume fund size of $6B) invests $300M in a company on the first day of its first year. On the same day it also charges annual management fees. A year later, on the first day of the second year, it again charges annual management fees, and also exits the investment it made a year ago with an exit (equity) value of $500M. If the fund used the fee/carry structure #1 (20% carry, 1.5% fee, and 7% hurdle rate, carry basis = committed capital), how much carry would GP have received, and how much distribution would LP have received? How would your answer change if the fund used the fee/carry structure #3 (30% carry, 0.5% fee, and 0% hurdle rate, carry basis = committed capital)? Please show your steps.

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