What''s the annual management fee

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Reference no: EM133908410

Problem

A private equity firm manages a $300 million fund. They charge a 2% annual management fee and receive 20% carried interest. Assume the fund generates a gross return of 90% over a 7-year investment period.

1. What's the annual management fee?

2. What's the total fund value? Get the instant assignment help.

3. Calculate the carried interest for the following three scenarios:

a. no hurdle rate
b. 8% hurdle rate
c. 10% hurdle rate

Reference no: EM133908410

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