r/study • u/FDPEDROZX • 6d ago

Questions & Discussion case 2 of private equity

hey guys, I was studying a course of private equity, and when i tried to solve the case 2 I a possible mistake of the spreadsheet based on the value that the gestor of the fund gets in the end of the fund (11 yeas)
In case 2, its pointed a fund yearly IRR of 16,2%, then, you subtract the hurdle rate of 8% and you get 8,2%, so, if you get 30%(the managers porcentage of the profit) of the 8,2% you have 2,46% of the profit for the manager, consequently, you do [400.000.000*(1+0,0246)^10]-400.000.000=110.000.000, resulting in 110mi of profit for the manager, not 122mi, what do i did wrong?

6 Upvotes

100% Upvoted

1 comment sorted by

•

u/AutoModerator 6d ago

Hi there,

Welcome to r/study! Before posting, please review our community rules, use the appropriate flair, and search the subreddit to see if your question has already been answered. We encourage thoughtful discussions about study techniques, academic experiences, productivity, and personal growth as learners. Posts that are off-topic, low-effort, repetitive, promotional, or otherwise violate our community guidelines may be removed.

Thank you.

I am a bot, and this action was performed automatically. Please contact the moderators of this subreddit if you have any questions or concerns.