Question: Soft Hurdle A real estate investment fund has deployed $100 million initial capital to purchase a property. The fund has a soft hurdle preferred return

Soft Hurdle A real estate investment fund has deployed $100 million initial capital to purchase a property. The fund has a soft hurdle preferred return to investors of 8% per annum and an 80%/20% carried interest incentive split thereafter

(with a standard catch-up clause). At the end of Year 2, the property is sold for a total of $160 million.

Ignoring management fees, what are the correct distributions to the LPs and the GP?

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