Carry where multiple distributions
Hoping someone can help me with this.
If there was a fund (or some other sort of investment vehicle) that paid an annual dividend as well as a lump sum at the end of the investment's five-year life, what would be the appropriate way to calculate a carry of say 20 percent. Calculating something like NAV is not really appropriate for this.
Consider the following gross dollar amounts available for distribution (Initial Equity):
T0: (1,000,000)
T1: 100,000
T2: 100,000
T3: 100,000
T4: 100,000
T5: 1,200,000
Thank you!
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