The first $1m would be payed back to the entire syndicate
i'm not an expert but i believe the carry is the portion above and beyond the promised return - in this case, the syndicated invested $1m, the promised return (let's call it 10% a year) would then be $1.1m (let's call it a year of waiting).
wouldn't the carry (the "bonus", basically) be 20% of $2.9m?
or maybe these deals lack a promised return and define the carry as anything beyond returned principal?
Comments
i'm not an expert but i believe the carry is the portion above and beyond the promised return - in this case, the syndicated invested $1m, the promised return (let's call it 10% a year) would then be $1.1m (let's call it a year of waiting).
wouldn't the carry (the "bonus", basically) be 20% of $2.9m?
or maybe these deals lack a promised return and define the carry as anything beyond returned principal?