What is the minimum return that a private equity fund manager is required to create prior to receiving any carried interest?
A)opportunity cost
B)hurdle rate
C)interest hurdle
D)hurdle cost
E)opportunity hurdle

Question

Quizplus · Accepted Answer

The minimum return that a private equity fund manager is required to create prior to receiving any carried interest is known as the hurdle rate. It is the minimum rate of return that the fund must achieve before the manager starts earning any carried interest. It is also known as the "hurdle rate" because it represents the hurdle that the manager must clear before earning any carry.

What Is the Minimum Return That a Private Equity Fund