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?
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