- 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
Assume a "2 and 20" compensation structure with 8% hurdle rate and a catch-up clause. If the partnership is 6% this year, I. LPs can require a clawback from GP.
II. LPs gets the entire 6%.
III. The management fee is always paid by the investor, regardless of profits.
Correct Answer: II and III
User Contributed Comments 1
| User | Comment |
|---|---|
| 923029 | Is that a net 6% after the management fee of 2% AUM is deducted? 8% - 2%? |