200 million was invested at the beginning of Year 1 in a private equity limited partnership fund....
Fantastic news! We've Found the answer you've been seeking!
Question:
£200 million was invested at the beginning of Year 1 in a private equity limited partnership fund. The fund's fees are a 2.5% annual management fee and a 25% carried interest. There is a 10% hurdle rate, calculated on a simple annual interest basis (ie, not compounded interest). At the end of its 5-year life, the fund has gross proceeds of £330 million.
What carried interest will the GP of the fund receive?
Related Book For
Advanced Accounting
ISBN: 978-0538480284
11th edition
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Posted Date: