- CFA Exams
- CFA Level I Exam
- Topic 8. Alternative Investments
- Learning Module 1. Alternative Investment Features, Methods, and Structures
- Subject 3. Investment and Compensation Structures
CFA Practice Question
Which distribution method favors LPs? A. deal-by-deal
B. whole-of-fund
C. catch-up
Correct Answer: B
In whole-of-fund, GP does not participate any profits until LPs receive their initial investment and the hurdle rate has been met.
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