2007 management fees are calculated as 1.50% of paid-in capital. 2007 paid-in capital is $200 + $100 + $100 + $50 = $450. Management fees are 1.50% of $450, or $6.75.
Carried interest is the general partner’s share of fund profits. It is calculated based on the total return (NAV before distributions) method using committed capital. Total capital commitment by investors is $500 million. In 2007 NAV before distributions was $529.8, exceeding committed capital for the first time.
Carried interest is 25% of NAV before distributions less committed capital, or (0.25)($529.8 − $500) = $7.45
