How big does the distribution ?om company a

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Assume you have made a $100 million commitment to a $1 billion Buyout fund with 2% management fees for the ?rst 5 years, 20% carry, 8% hurdle and a GP catch-up provision. The carry mechanism is an American style waterfall. $180 million of fLmd capital is invested in Company A on day 1 of operations of the fund. At the end of 6 years, Company A is sold for $500 million and all of these proceeds are distributed.

  • How much of the $500 million distribution is realized by you?
  • How big does the distribution ?om Company A have to be for you to receive $40mm?

Reference no: EM133073527

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