Answered: A $560m hedge fund with a 1% management… | bartleby

Entrepreneurial Finance

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter12: Professional Venture Capital

Section: Chapter Questions

Problem 14DQ

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A $560m hedge fund with a 1% management fee, 0.23% in other expenses, and a 15%
incentive fee earns a 1.9% gross return. What is the $ incentive fee and the net return to LPs
if there is $7m of GP capital?

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Hello, can you show how this shoould be made A hedge fund with $1 billion of assets charges a management fee of 2% and an incentive fee of20% of returns over a money market rate, which currently is 5%. Calculate total fees, both indollars and as a percent of assets under management, for portfolio returns of:a. −5%b. 0c. 5%d. 10%
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