hard · Private Equity pe-core
An institutional LP is evaluating a buyout fund with a standard European waterfall. The fund has a size of $100M. Over 4 years, the fund calls all capital and eventually distributes $200M to its partners.
If the preferred return is 8% compounded annually and the GP has a 20% carried interest with a 100% catch-up, what is the total carried interest distributed to the GP?
- $20.0M
- $28.8M
- $25.0M
- $36.0M
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