easy · Private Equity
A private equity fund provides a distribution waterfall walk for an exit. The LPs have received their $100M of returned capital and their $30M preferred return. The fund has a 20% carried interest with a 100% catch-up provision.
How much must be distributed to the GP during the catch-up phase for it to achieve its target 20% share of total profits?
- $30.0M
- $6.0M
- $7.5M
- $20.0M
Sign up free to see the explanation and track your rank →
More Private Equity practice
- If the GP receives a 20% carry on the profit from Deal A immediately, and the fund eventua
- Following the investment, what is the investor's ownership percentage in the company, assu
- What is the Interest Coverage Ratio?
- A private equity firm is calculating a 'Public Market Equiva… — If the KS-PME score is 1.1
- A sponsor provides an 'Equity Cure' to a portfolio company. What is the standard purpose o
- What is the new effective conversion price for the growth equity investor?
- Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on
- What is the company's Interest Coverage Ratio?