Catch up calculation
Hi - this is probably going to be a basic question but I'm struggling to understand catch up calculations so wanted to ask if someone could walk through the following example.
LP commits £100m to a fund. Fund has a management fee of 0.7% on invested capital, performance fee of 7.5% over a hurdle of 5% with 100% catch up.
What would the total fee load be for total returns at 5% ,6%, 7% and 8%?
How would the fee loads change if the catch up was 25%?
Thanks
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