easy · Private Credit & Debt fund-structures-returns-economics
A private credit fund uses a 200M whole-fund (European) waterfall. The fund has called 200M and distributed nothing for four years. In Year 5, it distributes 380M.
Given an 8% preferred return (compounded annually) resulting in a 93.9M hurdle, and a 20% GP catch-up, how much capital is returned to the LPs in Tier 1?
- 93.9M
- 200.0M
- 380.0M
- 180.0M
Sign up free to see the explanation and track your rank →
More Private Credit & Debt fund-structures-returns-economics practice
- What is the fund's TVPI (Total Value to Paid-In) multiple?
- What is the Dividend Coverage ratio?
- What is its current Debt-to-Equity (Leverage) ratio?
- A BDC (Business Development Company) is required to distribu… — What is the primary benefi
- An investor is reviewing a fund's performance and sees a DPI… — What does this suggest abo
- If the fund's net TVPI is only 1.15×, what is the most likely explanation?
- If management achieves a 6.0x Money Multiple (MOIC) on their personal investment, while th
- What is the Sponsor's Money Multiple (MOIC)?