medium · Private Credit fund-structures-returns-economics
A private credit vehicle has $400,000,000 in equity and $400,000,000 in debt at a 6% interest rate. The portfolio yield is 10%.
After a 1% management fee on gross assets and no incentive fee, what is the fund's Net Return on Equity?
- 13%
- 10%
- 14%
- 12%
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