easy · Private Credit & Debt fund-structures-returns-economics
A 100M fund has returned all LP capital and achieved its 8% hurdle. The GP catch-up is 20%.
If the total profit above the return of capital is 100M and the LP preferred return (hurdle) was 36M, how much does the GP receive in the catch-up phase (Tier 3)?
- 20.0M
- 100.0M
- 9.0M
- 7.2M
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