Fund Economics

Carried Interest

GP carry on a gain — with a compounded preferred return and a full GP catch-up — and the LP's net distribution and multiple after the split.

Contributed capital (LP)

Total proceeds / distributions

Carry

Preferred / yr

Holding period

yrs

GP catch-up

GP carried interest

$30.00M

20.0% of profit

LP net distribution

$220.00M

2.20× on capital

Distribution waterfall

1 · Return of capital → LP$100,000,000

2 · Preferred return → LP · 8%/yr × 5y$46,932,808

3 · GP catch-up → GP$11,733,202

4 · Carried split → GP (20%)$18,266,798

4 · Carried split → LP (80%)$73,067,192

GP total carry$30,000,000

LP total$220,000,000

For modeling and illustration only — not investment, legal, or tax advice. Conventions vary by fund; verify against your governing documents.