Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Oulala Partners is a small private equity fund, which, at the end of its 10-year life, makes its first and last distribution to its LPs.

Oulala Partners is a small private equity fund, which, at the end of its 10-year life, makes its first and last distribution to its LPs. The total amount that the LPs contributed is $25 million. The fund's hurdle corresponds to an additional $10 million for the LPs to get before the GP gets any carried interest. 


If the GP benefits from a 75% catch-up provision, which is the minimum amount of total proceeds after which the 80/20 split will start to apply? In other words, after which lowest amount of total proceeds would the catch-up provision have been unnecessary?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate the minimum amount of total proceeds after which the catchup provision would have been ... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

9th Edition

1337614689, 1337614688, 9781337668262, 978-1337614689

More Books

Students also viewed these Finance questions