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

In a private credit fund, the 'Hurdle Rate' (or Preferred Return) is best defined as:

1. The annualized management fee percentage charged during the harvest period
2. The minimum compound annual return LPs must receive before the GP earns carried interest
3. The minimum amount of leverage a manager must apply to the portfolio to be considered a 'leveraged' fund
4. The maximum interest rate a borrower can be charged under state usury laws

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