看不懂这题

问题如下：

Buyout Capital, LLC, is a private equity fund that has the following characteristics:

• Capital committed: $200 million

• Preferred return: 8% soft hurdle

• Fund distribution: after five years

• Management fee: none

• Carried interest: 20% above preferred return

• Waterfall structure: American (deal by deal) with clawback

The fund made five investments, tabulated as follows:

What is the total carried interest to the GP?

选项：

A.$30 million

B.$32 million

C.$34 million

解释：

A is correct. The distribution of profit of each investment is as follows:

Since the preferred return of the LP is 8%, Investments 1, 2, and 4 all meet the criterion and the profit is split 80/20 between the LPs and GP. Investment 3 does not earn the GP any carry because it fails to meet the preferred return; neither does Investment 5, whose profit is negative. Because of the clawback clause, the GP’s carry is reduced by $2 million (or 20% of the loss on Investment 5). Therefore, the total carried interest adds up to $30 million, or 30/160 = 18.75% of the total profit made by the fund.