How much does Grove Street charge for their services? What increment to performance is required to justify their fees? Using the information below construct a cash-flow schedule with and without Grove Streets fees and carry. In analyzing the question, you may wish to assume that: 0 Like CEV III, the next fund raised $500m. The money is draw down at the beginning of the rst 6 years in the following pattern: $50m, $100m, $100m, $100m, $100m, $50m. 0 The fund life is 12 years. 0 The fees are paid out of drawn down capital for the rst six years, for the next 6 years they are paid out of distributed capital. 0 Proceeds are returned to GSA six years after the date of the original investment 0 Initially assume that the proceeds are returns at a mulple of 2 on the original investment and that 15% is an appropriate discount rate. 0 The annual management fee is 0.75% on committed capital. This fee is then halved in years 4,5 and 6, and then halved again until year 12. 0 Carried interest is 5% but can only be collected when committed capital has been returned. (You can ignore the effect of the hurdle rate) 0 The basis for calculating prot is committed capital before fees (i.e. no double dipping)