Question
In year 1, a fund increases from $122m to $130m (gross asset value). The fund has a 2/20 structure with a hurdle rate of 4%.
In year 1, a fund increases from $122m to $130m (gross asset value).
The fund has a 2/20 structure with a hurdle rate of 4%.
How much are the performance fees for this year? Assume that management fees are charged on the ending gross asset value. Performance fees are deducted after management fees.
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Financial Accounting
Authors: Walter Harrison, Charles Horngren, William Thomas, Wendy Tietz
11th edition
978-0134065830, 134065832, 134127625, 978-0134127620
