Distribution Priority:
1. 100% to the GP until unpaid management fees are reduced to $0
2. 100% to the LPs until they have received distributions equal to Capital Contributions
3. 100% to the LPs until Unpaid Preferred Return is reduced to $0
4. 100% to the GP until the GP has received distributions equal to 20% of amounts paid to LPs pursuant to Tier 3 and Tier 4 (GP Catchup)
5. Thereafter 20% to the GP and 80% to the LP
Assumptions:
Funds available to distribute is $150M
Investors contributed $100M
There are no unpaid management fees owed to the GP
Preferred return is 10%

Question:
1) Based on the waterfall, what is total carried interest paid to the GP? I know the answer will be $8 million

20 What does point 4 means?

Answer rating: 100% (QA)

Point 4 of the distribution priority states that 100 of the distributions ... View the full answer