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For an investment in a private equity partnership, management fees are most likely calculated as a...

For an investment in a private equity partnership, management fees are most likely calculated as a percentage of the:

a. total amount of investor funds committed to the partnership at its inception.

b. amount of investor funds that have actually been invested in portfolio companies.

c. total (market or model) value of the portfolio companies held in the portfolio at year-end.

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Answer #1

Management fees are most likely calculated as a percentage of the:

a. total amount of investor funds committed to the partnership at its inception.

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