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what about hurdle rates? suppose in my example, it was 10%; lets suppose the NAV of the fund gets up to $109 million, that's shy of the 10% hurdle mark, so no carried interest.

what happens if it gets up to $111 mil? does the guy get carried interest of ... say it's 20%, so would it be 20% of 11 mil, or 20% of 1 mil that he gets?

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