A private equity fund pays the general partners a 20% carried interest. The carried interest has...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A private equity fund pays the general partners a 20% carried interest. The carried interest has a 100% catchup, and the limited partners are entitled to an 8% preferred return. The fund has $250 million in committed capital. In year 3, the fund sells its first investment for $17 million. It had invested $15 million. The holding period is 2 years. How are the year 3 profits allocated between the general partner and the limited partners? A private equity fund pays the general partners a 20% carried interest with 100% catchup, and the limited partners are entitled to an 8% preferred return. The fund has $250 million in committed capital. In year 3, the fund sells its first investment for $13 million. It had invested $15 million. In year 4, it sells its second investment for $27 million. It had invested $20 million. The holding period for each investment is 2 years. How are the year 4 profits allocated between the general partner and the limited partners? A private equity fund pays the general partners a 20% carried interest. The carried interest has a 100% catchup, and the limited partners are entitled to an 8% preferred return. The fund has $250 million in committed capital. In year 3, the fund sells its first investment for $17 million. It had invested $15 million. The holding period is 2 years. How are the year 3 profits allocated between the general partner and the limited partners? A private equity fund pays the general partners a 20% carried interest with 100% catchup, and the limited partners are entitled to an 8% preferred return. The fund has $250 million in committed capital. In year 3, the fund sells its first investment for $13 million. It had invested $15 million. In year 4, it sells its second investment for $27 million. It had invested $20 million. The holding period for each investment is 2 years. How are the year 4 profits allocated between the general partner and the limited partners?
Expert Answer:
Answer rating: 100% (QA)
To determine the allocation of profits between the general partner and the limited partners in year 3 and year 4 we need to calculate the distribution ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
The following elements of stockholders equity are adapted from the balance sheet of Sandler Marketing, Corp. Sandler paid no preferred dividends in 2011. Requirement 1. Compute the dividends to the...
-
Construct a 2 5-1 design. Show how the design may be run in two blocks of eight observations each. Are any main effects or two-factor interactions confounded with blocks?
-
Repeat the previous problem, but assume that the cost of the equipment is reduced from a government grant by \(20 \%\). Problem 2.8 Repeat the previous problem, but assume that the cost of...
-
Mason, Jiri, and James are partners in Woodware Company. Their capital balances as of July 31, 2014, are as follows. Each partner has agreed to admit Frank to the partnership. Required 1. Prepare the...
-
what ways do employee perceptions of organizational justice, encompassing distributive, procedural, and interactional fairness, influence their level of commitment to the organization's goals and...
-
You are the manager of the Mighty Fine mutual fund. The following table reflects the activity of the fund during the last quarter. The fund started the quarter on January 1 with a balance of $40...
-
Write a short C program that declares and initializes (to any value you like) a char, an int, and a double. Next, declare and initialize a pointer to each of the three variables. Your program should...
-
Converting Binary to 8421 BCD 1. Convert 111011010 to BCD 2. Convert 111011111 to BCD 3. Convert 10001000 to BCD 4. Convert 1101 to BCD 5. Convert 11110011 to BCD Convert Binary to 4221 BCD 6....
-
3. T (n) is defined recursively as 1 T(n) = { 2. [ 2 =1 if n = 1, otherwise. T(i) What is the order of T(n)? In other words, find an expression f(n) such that T(n) = 0(f(n)). You now implement the...
-
2. Convert the following C code to appropriate MIPS assembly. You will turn this in on paper (typed or handwritten), but you are encouraged to test in SPIM. int i= 0; while (i < 5) { printf("Loop...
-
Please label the direction of the drift and diffusion (electrical) currents for both electrons and holes, given their carrier concentration distribution profiles and the applied electric field marked...
-
123 4 A 5 6 Beginning Account Balance 7 Annual desired pension payout 8 Annual payment Interest rate 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 Client's Age 45 46 47 48 49 50 51 52 53 54 55 56 B...
-
Share one personal takeaway or lesson learned from the movie regarding the application of data in marketing strategies. Pose one thought-provoking question related to the movie's themes and their...
-
Describe the general ways that the revised Form 990, applicable for tax year 2008 and beyond, is different from previous versions.
-
Tom has a successful business with $100,000 of income in 2012. He purchases one new asset in 2012, a new machine which is 7-year MACRS property and costs $25,000. If you are Tom's tax advisor, how...
-
Kathy Kennedy (age 44) is a single taxpayer and she lives at 212 North Pine Way, Payson, AZ 85541. Her Social Security number is 467-98-9784. Kathy's earnings and income tax withholding as the...
-
Jim is fired from his job as a waiter and decides to take an extended trip to Europe. After touring Europe for 3 months, Jim returns to look for a new job as a waiter. Are his job-hunting expenses...
-
The W250 28 A-36 steel column is fixed at its base. Its top is constrained to rotate about the \(y-y\) axis and free to move along the \(y-y\) axis. If \(e=350 \mathrm{~mm}\), determine the allowable...
-
The W250 \(\times 28\) A-36 steel column is fixed at its base. Its top is constrained to rotate about the \(y-y\) axis and free to move along the \(y-y\) axis. Determine the force \(\mathbf{P}\) and...
-
The W14 \(\times 53\) column is fixed at its base and free at its top. Determine the maximum eccentric load \(P\) that it can support without causing it to buckle or yield. Take \(E_{\mathrm{st}}=\)...
Study smarter with the SolutionInn App