hard · Private Equity
An LP commits $100M to a private equity fund with an 8% preferred return (compounded annually) and a 20% carried interest with a 100% GP catch-up. After a 5-year hold, the fund distributes $250M in total. Calculate the amount of the GP's Tier 3 catch-up distribution, assuming the LP's preferred return is $46.9M.
- $9.4M
- $11.7M
- $20.0M
- $30.0M
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