clawback

.xlsx

School

University of Texas *

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Course

387

Subject

Finance

Date

Apr 3, 2024

Type

xlsx

Pages

15

Uploaded by UltraFalconMaster1014

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UT Fall 2022 Clawback Example Answer Assumptions: Fund Size $ 2,000,000,000 Investments 16 Size of each investment $ 125,000,000 Carried interest 20% Management fee 2% Hurdle rate 0% Distributions From inception Initial liquidated investments 7 Exit value of each initial exit $ 600,000,000 Liquidation value of initial exits $ 4,200,000,000 Distributible proceeds $ 4,200,000,000 Invested capital in initial exits 875,000,000 Distributable proceeds $ 3,325,000,000 Distributions GPs $ 665,000,000 LPs $ 2,660,000,000 Assumptions: Fund Size $ 2,000,000,000 Investments 16 Size of each investment $ 125,000,000 Carried interest 20% Management fee 2% Hurdle rate 0% Distributions From inception Initial liquidated investments 7 Exit value of each initial exit $ 600,000,000 Liquidation value of initial exits $ 4,200,000,000 Additional liquidated investments 9 Exit value of each additional exit $ 80,000,000
Liquidation value of additional exits $ 720,000,000 Invested capital in additional exits 1,125,000,000 Distributable proceeds -$ 405,000,000 Distributions GPs -$ 81,000,000 LPs -$ 324,000,000 Clawback -$ 81,000,000 Total liquidation value of exits Initial exits $ 4,200,000,000 Additional exits 720,000,000 Total $ 4,920,000,000 Invested capital $ 2,000,000,000 Net distributable proceeds $ 2,920,000,000 Total Distributions Including the Initial Capital Invested GPs $ 584,000,000 LPs $ 2,336,000,000
Question Assumptions: Fund Size Investments Size of each investment Carried interest Management fee Hurdle rate Distributions Initial liquidated investments Exit value of each initial exit Liquidation value of initial exits Distributible proceeds Invested capital in initial exits Distributable proceeds Distributions GPs LPs Assumptions: Fund Size Investments Size of each investment Carried interest Management fee Hurdle rate Distributions Initial liquidated investments Exit value of each initial exit Liquidation value of initial exits Additional liquidated investments Exit value of each additional exit
Liquidation value of additional exits Invested capital in additional exits Distributable proceeds Distributions GPs LPs Clawback Total liquidation value of exits Initial exits Additional exits Total Invested capital Net distributable proceeds Total Distributions Including the Initia GPs LPs
$ 2,000,000,000 16 $ 125,000,000 20% 2% 0% From inception 7 $ 600,000,000 $ 2,000,000,000 16 $ 125,000,000 20% 2% 0% From inception 7 $ 600,000,000 9 $ 80,000,000
al Capital Invested
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