The $200M fund Aggie I has completed 6 years of its 10-year life. Fee = 2% of committed capital. Carry = 20% of profit after return of committed capital. See the worksheet for its annual investments, portfolio values before and after exits (if any), and distributions (exits). Assume all investments/exits/fee payments are made on the first day of each year. 

Calculate the carried interest in year 6. 

Years                                                            1     2       3        4       5      6

 Investments                                               15    70    35      20    20     0

 portfolio value (before exits)                   15    90   155    215   225   175 

total returned capital                                 0      0      0      80    100   60 

port value after capital returned              15    90   155    135   125    115

Answer rating: 100% (QA)

To calculate the carried interest in year 6 we need to determine the profit after the re... View the full answer