Newsletter: Impact of Credit Lines on Carry

In Part I of this publication, we have discussed the impact of subscription lines of credit on the Net IRR and the potential distortion of the ‘Fee Drag’ (resulting in a negative ‘Fee Drag’) rendering the Gross IRR/Net IRR analysis in certain situations quasi-useless due to the fact that the Net IRR may turn out to be higher than the Gross IRR, in addition to the time mismatch between Gross and Net IRRs.
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Click here to read part II where we discuss the impact of subscription lines of credit on carried interest.

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