easy · Private Credit & Debt fund-structures-returns-economics

In a 'European Waterfall' structure for a private capital fund, when is the General Partner (GP) allowed to receive carried interest distributions?

1. Once the fund has called at least 50% of its total committed capital.
2. Only if the fund's internal rate of return (IRR) is below the hurdle rate.
3. Only after LPs have received back all contributed capital and the preferred return for the whole fund.
4. Immediately upon the successful exit of any single portfolio company.

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