hard · Private Credit & Debt
A $500 million private debt fund has a 1.0x leverage ratio. It earns a 10% net asset yield and pays 6% interest on its fund-level debt.
After a 1.5% management fee on gross assets, what is the ROE before incentive fees?
- 11.0%
- 8.5%
- 12.5%
- 14.0%
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