1. Consider a small fund with a $30 million commitment. The GP comprises three partners and several other employees. The fund pays a 2 percent fee on committed capital each year for the operating budget and there is no preferred return to the LPs. The GP is entitled to a carried interest of 20%. The fund has an 8-year life span and a 4-year average holding period of investments, with a 30 percent annual appreciation after fees. The fund invests the $30 million in four equal amounts per year in Years 1 through
   1. How much is the management fee per GP?
   2. How much are the capital calls in years 1 through 4?
   3. How much are annual returns, in dollars, in years 5 through 8?