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A Valuation Problem

1 pointsby imkevingaoabout 14 years ago
Hi guys, i'm stuck on this problem for my finance class, and I was wondering if anyone here can help.<p>An early stage VC fund raises $250M. The partners together have a total carry of 25% of the fund’s returns with the other 75% allocated to the LP’s and a 2% management fee. At the end of year 7, the fund has a return of 13% and the decision is made to allocate all the gains earned to this time. What is the dollar amount distributed to the general partners and what is the $ amount distributed to the limited partners? How are the distributions taxed?<p>Anyone have a clue of how to answer this question?

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