hard · Private Credit & Debt
A fund's investment period has ended. The management fee now 'steps down' to 1.0% on 'invested capital.'
If the fund has $500M in commitments, $400M in total capital drawn, and has realized $120M (at cost) of its investments, what is the new annual management fee?
- $4.0M
- $2.8M
- $5.0M
- $1.2M
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