hard · Private Equity pe-core
A $500m fund is in its sixth year (the harvest period). The management fee is 2.0% on committed capital during the 5-year investment period and then steps down to 1.5% on 'invested cost of unrealized investments.'
If the fund has invested $400m and realized $120m (at cost), what is the management fee in Year 6?
- 10.0m
- 7.5m
- 6.0m
- 4.2m
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