Distribution Priority: 1. 100% to the GP until unpaid man

Share With

Distribution Priority:

1. 100% to the GP until unpaid management fees are reduced to $0

2. 100% to the LPs until they have received distributions equal to Capital Contributions

3. 100% to the LPs until Unpaid Preferred Return is reduced to $0

4. 100% to the GP until the GP has received distributions equal to 20% of amounts paid to LPs pursuant to Tier 3 and Tier 4 (GP Catchup)

5. Thereafter 20% to the GP and 80% to the LP

Assumptions:

Funds available to distribute is $150M

Investors contributed $100M

There are no unpaid management fees owed to the GP

Preferred return is 10%

Question:

Based on the waterfall, what is total carried interest paid to the GP?

Related Questions