Preferred Return - What is it and How to Calculate it? скачать в хорошем качестве

Preferred Return - What is it and How to Calculate it?

Preferred Return, often called ‘pref’, is a minimum return that Limited Partners in a fund must receive before any carried interest can be distributed to General Partners. A preferred return is expressed as an annual rate of return and can be thought of as the minimum expected return for the investment. Limited Partners will receive 100% of their gross distributions until they have reached a certain rate of return on their investment in the fund. Once this rate of return has been met, General Partners will start to earn carried interest. Read more on our blog: https://tsmfinancialmodels.com/blog/p... Visit our Website: https://tsmfinancialmodels.com/