Question: An investment manager is considering three different promote structures. Assume the payouts on the plan operate as below (these are simplified from reality as in Question 8): Preferred Rate: Catch-Up Rate: Max GP Share: Structure 1 11.00% 70.00% 20.00% Structure 2 9.00% 50.00% 20.00% Structure 3 7.00% 40.00% 25.00% Calculate what the share of profits will be at differing overall returns for the investment. (Follow the simplified example in the first tab of the Excel sheet.) Case 1 Case 2 Case 3 Case 4 Case 5 Total Return 12.00% 14.00% 16.00% 18.00% 20.00% Solution: Question: An investment manager is considering three different promote structures. Assume the payouts on the plan operate as below (these are simplified from reality as in Question 8): Preferred Rate: Catch-Up Rate: Max GP Share: Structure 1 11.00% 70.00% 20.00% Structure 2 9.00% 50.00% 20.00% Structure 3 7.00% 40.00% 25.00% Calculate what the share of profits will be at differing overall returns for the investment. (Follow the simplified example in the first tab of the Excel sheet.) Case 1 Case 2 Case 3 Case 4 Case 5 Total Return 12.00% 14.00% 16.00% 18.00% 20.00% Solution