hard · Private Equity & LBOs
A sponsor is considering a 'Single-Asset Continuation Vehicle' (CV) for a portfolio company currently valued at 400M. The original fund (Fund IV) invested100M for a 100% stake. The CV will acquire the asset at the $400M valuation.
If Fund IV has already cleared its hurdle, how much 'Crystallized Carry' does the GP receive at the time of the transfer?
- $80M
- 0M, as carry is only realized upon a third-party exit.
- $20M
- $60M
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