Quick question - Private Equity before, carried, interest, question

RealEstate_CFA

Is Committed Capital and Paid in Capital same?
In calculating the carrier interest - Schweser says %carried interest x (Change in NAV before distribution)
In one of the questions in Qbank, it says %of NAV before before distributions less committed capital.
Confused. Any help

RepoToronto

Paid in capital is year-on-year how much capital is brought into the venture.
committed capital is usually a higher number - how much the PE investor decided to invest in the first place.
In the first total return method - carrying interest is paid only when the NAV before distribution exceeds the Committed Capital. This statement in Qbank refers to that.
There was a question in the Sample 1 also related to this, if you remember.
Only when the NAV before distributions  Committed Capital - does the carrying interest portion kick in. Committed capital kind of sets the hurdle rate so that has to be exceeded before the GP gets any money from the deal.!

bchadwick

Should i ignore the first formula. Is there a reason why they gave that formula? yeah I do remember that question.