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Private Equity
~60s
Returns, Risk & Fund-Level Thinking
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easy
Returns
In PE fund economics, what does
20% carry
typically mean?
A
Carry is the interest rate on fund debt financing
B
LP receives only 20% and GP receives 80% of profits
C
GP receives 20% of profits (subject to the fund's waterfall/hurdle)
D
GP receives 20% of committed capital every year
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