Question
Imagine a private equity fund with the following characteristics: Fund Size: $100 million Management Fee: 2% of committed capital annually Catch up and carried Interest
Imagine a private equity fund with the following characteristics:
Fund Size: $100 million
Management Fee: 2% of committed capital annually
Catch up and carried Interest (Carry): 20% of profits with a hurdle rate of 8%.
The fund invests in a company and realizes a profit of $30 million from the investment after deducting the management fees and hurdle rate.
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
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