medium · Private Credit fund-structures-returns-economics
An institutional LP commits $100M to a 2023 vintage private equity fund with a European (whole-fund) distribution waterfall, an 8% preferred return, and 20% carried interest with a 100% catch-up. By Year 4, the fund has called $60M, of which $50M was for investments and $10M for fees. The fund realizes its first exit for $90M.
How much carried interest is the GP entitled to distribute at this time?
- $18.0M
- $4.1M
- $6.0M
- $0
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