Thanks mam, in some instances I have seen catch-up being calculated as % of hurdle rate amount, is it an accepted industry practice? or the way which u have explained in the video is the only method of calculating? Please make a short video on catch up calculation if possible
Maam, thank u for making us knowledgeable in fund accounting industry, i have some query, as i don't Experience in fund after doing mba...is it possible to get job in private equity or hedge fund accounting
Hi Sushila if in the fund GP invests (I think GP invests with very less capital) will that also be paid along with the principal of LP....? And then the preferred return to LP...?
Out of the funds available for Distribution, Firstly LP and GP will be allocated to their capital. Then LPs are paid their preferred return. GP will not get preferred return. Catch up clause is only applied for GP for his performance. Only after GP has been allocated his total performance fee, remaining funds/profits is distributed to LP and GP based on their agreement.
Sushila Ma'am has covered the topic very well. people who have experience can easily understand. An example with numbers will actually help freshers to a great extent :)
Hi mam, Once the interviewer ask me this question. NAV formula is assets minus liability But as per balance sheet asset is equal to liability NAV = 0 ??
You explaining all this concept very nice manner. Thank you so much
So nice of you. Thank you
Explained in a very precise manner in a short duration by covering all the points
Thank you 🙏 chief
Thankyou so much. I am using this videos for interview preps.
All the best for your interviews!!
Thank you madam, can u share link of American and European waterfall concept I couldn't find it
Thanks Mam
I have a question below
What if there is loss in private Equity and then how fund waterfalls model will works
Great video mam
Mam so can we say that catch up tranche is incentive fee?
Ya . That's right
Thanks mam, in some instances I have seen catch-up being calculated as % of hurdle rate amount, is it an accepted industry practice? or the way which u have explained in the video is the only method of calculating? Please make a short video on catch up calculation if possible
Yes, correct
Hi madam Can u please explain more about local base and reporting currency.I am totally confused.
Maam, thank u for making us knowledgeable in fund accounting industry, i have some query, as i don't Experience in fund after doing mba...is it possible to get job in private equity or hedge fund accounting
Thanks 🙏
Hi Sushila if in the fund GP invests (I think GP invests with very less capital) will that also be paid along with the principal of LP....? And then the preferred return to LP...?
Hi. Thank you for your query
The hurdle rate is given to LP
Out of the funds available for Distribution, Firstly LP and GP will be allocated to their capital. Then LPs are paid their preferred return. GP will not get preferred return. Catch up clause is only applied for GP for his performance. Only after GP has been allocated his total performance fee, remaining funds/profits is distributed to LP and GP based on their agreement.
Sushila Ma'am has covered the topic very well. people who have experience can easily understand. An example with numbers will actually help freshers to a great extent :)
@@TheSaiteja Thank you for your kind words
Thankyou mam❤
You are always welcome Komal🙏
Hi mam,
Once the interviewer ask me this question.
NAV formula is assets minus liability
But as per balance sheet asset is equal to liability
NAV = 0
??
Ahhh !! That’s a googly question! Shareholders capital is the missing factor