Solve for amount of carried interest under both structures

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Problem 1: A VC ?rm is considering two different structures for its new $250M fund. Both structures would have management fees of 2 percent per year (on committed capital) for all 10 years. Under Structure I, the fund would receive an X percent carry with a basis of all committed capital. Under Structure II, the fund would receive a Y percent carry with a basis of all investment capital. For a given amount of (total) exit proceeds 5 $Z, solve for the amount of carried interest under both structures.

Reference no: EM132885334

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