2. Hawk Ventures VI is a $600m fund with management fees equal to 2.0% of commit

Question

2. Hawk Ventures VI is a $600m fund with management fees equal to 2.0% of committed capital. The distribution from any partnership investment are made in the following order of priority:
• 100% to the LPs until they have received an amount equal to their investment capital;
• 80% to the limited partners and 20% to the general partners.
At the end of the 5th year of the fund is totally invested. The cumulative distributions through year 5 are $500 million and the distribution for year 6 is $100 million.
a. (5 points) What is the carried interest in year 6?
b. (3 points) What is the carried interest in year 6 if the distribution was based their committed capital?

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