You are a general partner (GP) in a VC firm that is a "two and twenty shop". Your VC firm managed to raise $50,000,000 from the limited partners (LPs) who require 24% annual return from you. If you collect $750,000,000 from your investments by the end of year 10, how much carried interest will you receive (from the LPs) $81,462,157 $76,280,335 $64,055,745 $70,740,539

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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You are a general partner (GP) in a VC firm
that is a "two and twenty shop". Your VC firm
managed to raise $50,000,000 from the
limited partners (LPs) who require 24% annual
return from you. If you collect $750,000,000
from your investments by the end of year 10,
how much carried interest will you receive
(from the LPs)
$81,462,157
$76,280,335
$64,055,745
$70,740,539
Transcribed Image Text:You are a general partner (GP) in a VC firm that is a "two and twenty shop". Your VC firm managed to raise $50,000,000 from the limited partners (LPs) who require 24% annual return from you. If you collect $750,000,000 from your investments by the end of year 10, how much carried interest will you receive (from the LPs) $81,462,157 $76,280,335 $64,055,745 $70,740,539
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