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Basic Question 9 of 15

Assume a "2 and 20" compensation structure with 8% hurdle rate and a catch-up clause. The partnership has earned a 9% profit. How much can the GP get?

A. 1%
B. 1.8%
C. 2%

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

Learning Outcome Statements

describe investment ownership and compensation structures commonly used in alternative investments

CFA® 2025 Level I Curriculum, Volume 5, Module 1.