medium · Private Equity
A private equity fund has $500M in committed capital. The Limited Partnership Agreement (LPA) specifies a 2% annual management fee on committed capital during the 5-year investment period and 2% on invested capital thereafter.
If the fund has invested $300M by the end of year 6, what is the management fee for year 6?
- $4M
- $10M
- $6M
- $8M
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