medium · Private Equity

During the GP catch-up phase of a standard 20% carry fund distribution, how much of the subsequent distributions does the GP typically receive?

1. 20% of every subsequent distribution until the carry structure is fully equalized
2. 80% of distributions continuing until the LP's preferred return has been fully paid
3. 100% of distributions until the GP has received 20% of total profits distributed so far
4. A fixed management fee amount that is deducted before any profit sharing calculation

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