medium · Private Equity pe-core
An LP is considering a $50M co-investment in a deal alongside Orion Partners. The co-investment has no fees or carry. Orion Partners is also investing $100M from its fund, which charges a 2.0% annual fee and 20% carry.
If the deal generates a 3.0x gross MoIC over 5 years, what is the approximate net IRR for the LP on the co-investment portion?
- 19.1%
- 15.0%
- 24.6%
- 30.0%
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