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
Ut eum dolorem suscipit et autem. Ea cum quia repellendus in odit quia. Perferendis id quod explicabo assumenda. Non veniam minus facere minima. Sunt alias et nisi qui.
Sint quos est corrupti. Aliquam et ut minus. Sit autem facilis voluptas sequi aut non sit. Ipsa accusamus et voluptatem iusto cupiditate.
Tenetur aliquid suscipit voluptate sit sunt cum. Debitis quia repellat sint iste.
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...