Question
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: 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): Structure 1 Structure 2 Structure 3 Preferred Rate: 11.00% 9.00% 7.00% Catch-Up Rate: 70.00% 50.00% 40.00% Max GP Share: 20.00% 20.00% 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.) Total Return Case 1 12.00% Case 2 14.00% Case 3 16.00% Case 4 18.00% Case 5 20.00% For the situation described , which structure do you favor and why?
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Effective Writing A For Accountants
Authors: Claire B. May, Gordon S. May
11th Edition
0134667387, 9780134667386
