What would be the carried interest (at 20%)on a private equity portfolio with an initial value of $500 million that was subsequently liquidated for $750 million?
A) $50 million
B) $100 million
C) $150 million
D) $250 million

Question

Quizplus · Accepted Answer

Carried interest is calculated on the profit made. The profit here is $750 million - $500 million = $250 million. At 20%, the carried interest is 20% of $250 million, which equals $50 million.

What Would Be the Carried Interest (At 20%)on a Private