This case scenario considers the decision confronted by state pension fund manager Rod Calhoun as he determines whether to invest $200 million in the eleventh international buyout fund of Bain Capital: Bain Capital Fund XI. For the fund, Bain was offering its limited partners a choice between three different fee structures: first, a "conventional" fee construction of a 1.5% management fees along with 20% carried interest and 7% preferred return rate, secondly, a 1% management fees with 30% carried interest and 7% favored return rate, or thirdly, a 0.5% management fees, 30% carried interest, along with a 0% preferred rate of return. Should Calhoun be investing in Bain? If he must, which fee structure must Calhoun pick?
PUBLICATION DATE: October 17, 2012 PRODUCT #: 813100-PDF-ENG
This is just an excerpt. This case is about Case Study Solution
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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