hard · Private Equity pe-core
A fund's Limited Partnership Agreement (LPA) contains a 'GP Catch-up' provision of 100% and a 20% carried interest. After LPs receive their capital and preferred return, the GP receives the next $10M of distributions.
If this $10M completed the catch-up, what was the total 'Preferred Return' (profit) distributed to LPs immediately prior?
- $10M
- $50M
- $40M
- $80M
Sign up free to see the explanation and track your rank →
More Private Equity pe-core practice
- If the GP receives a 20% carry on the profit from Deal A immediately, and the fund eventua
- Following the investment, what is the investor's ownership percentage in the company, assu
- What is the Interest Coverage Ratio?
- A private equity firm is calculating a 'Public Market Equiva… — If the KS-PME score is 1.1
- A sponsor provides an 'Equity Cure' to a portfolio company. What is the standard purpose o
- What is the new effective conversion price for the growth equity investor?
- Which company will report a higher 'Gross Margin' and a higher ending 'Inventory' value on
- What is the company's Interest Coverage Ratio?