hard · Private Equity & LBOs
A private equity firm manages a $1,000M fund with a 2% annual management fee charged on committed capital during the 5-year investment period, and 1.5% on invested cost thereafter.
If the fund is in Year 3 and has deployed $600M into 5 companies, what is the annual management fee currently payable by the Limited Partners?
- $20M
- $12M
- $15M
- $9M
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