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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. 


Calculate the amount of carry that the private equity fund's management team will receive from this investment.

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