What Is the Minimum Return That a Private Equity Fund

question 28

Multiple Choice

What is the minimum return that a private equity fund manager is required to create prior to receiving any carried interest?

• A)opportunity cost
• B)hurdle rate
• C)interest hurdle
• D)hurdle cost
• E)opportunity hurdle

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Definitions:

Career

The pursuit of successive, often related jobs over time in a particular field or industry, often marked by advancements or changes in roles.

Candy Pieces

Small items of confectionery or sweet food products.

Chocolate

A sweet, typically brown food preparation of roasted and ground cacao seeds, often flavored, and consumed as candy or used as flavoring.

Butterscotch

A type of confectionery made primarily of brown sugar and butter, often used as a flavoring in desserts.