Question: Compute the total fee (in %) for a private equity fund assuming that the management fee is 1.5% per year, the carried interest is 20%,
Compute the total fee (in \%) for a private equity fund assuming that the management fee is 1.5% per year, the carried interest is 20%, the return on the PE fund's portfolio before fees is 17%. The fund uses a 7% hurdle rate. You can further assume that the PE fund is currently allowed to charge carried interest to all investors. A. The total fee is 2.65% B. The total fee is 1.5% C. The total fee is 5.0% D. The total fee is 3.5% E. The total fee is 3.2% F. The total fee is 4.9% G. The total fee is 3.4% H. The total fee is 2.0% 1. The total fee is 0.5%
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