hard · Private Equity
In a deal-by-deal (American) waterfall, a fund with a 100% catch-up and 20% carry exits its first deal. The deal cost $100.0M and returned $300.0M after 3 years. The preferred return is 8% compounded annually.
What is the total carry paid to the GP for this specific deal?
- $60.0M
- $6.49M
- $34.8M
- $40.0M
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