medium · Private Equity pe-core
A fund's gross-to-net return bridge shows a gross portfolio IRR of 25%.
If management fees are 2.0% of committed capital, fund expenses are 0.5%, and carried interest is 20% of profits after an 8% hurdle, which component is the largest contributor to the 600-800 bps 'leakage'?
- Carried interest
- The preferred return (hurdle)
- Management fees
- Fund expenses
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