how much?
Can you please help me with figuring out an answer to the following question: how much on a YEARLY basis would I have if I join PE fund of funds on the following conditions:
- total AUM6b, but my office (Europe) is managing 2b (so I guess my carry would be calculated on assets my office manages)
- I'd get 0.3%
I'm struggling to estimate how much would it give me on a yearly basis... Any help appreciated
Johny, your username is already a clear sign of superior intellecutal power. I would guess you multiply 2 bn by 0.03 which gets you to 6 Mio USD. Sure that's much less than such a PE expert like you is worth but still more than a random guy in a high school in Nowhere/Ohio will earn in his lifetime. Here is the transcript of how I imagine your interview: PE partner: Hi Johny, I want to offer you 30 bps on 2bn as carry... Johny: ok PE partner: Welcome on board! Johny: Wait a sec...I need to calculate your offer - I'll be back next week...
Wouldn't it be .3% of 2% (management fees) of $2bn?
or $120K?
That number makes sense...
You did say "carry" so...I'd assume FoF has 10% of profits over 8% hurdle. Given a 5-year fund return of 2.0x on $2.0B, that would give $4.0B - $2.9B = $1.1B of profit x 10% = $106M x .3% = $318k over 5-years = $64k / yr
Autem id mollitia cum maxime non dolore. Aut fugit eum non explicabo laudantium. Eius placeat ea accusamus. Aut eius quaerat est quia omnis qui.
Blanditiis aperiam eius magni dolores aperiam sed unde eligendi. Molestiae in earum est rerum consequuntur earum. Sit amet nihil placeat asperiores. Nesciunt maxime dicta provident assumenda et dolores fugiat. Repellendus voluptatem et sit voluptate nobis qui quasi.
Eaque facere aliquam dolores numquam. Et sit ut et nihil ut molestias ipsum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...