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Carried Interest: Why Would GP Distribute Funds?


I understand that the carried interest formula is min(NAVDBt-NAVBDt-1,NAVBDt-Committed Capital).

What I don’t understand is: if the carried interest is calculated on NAVBD, why would the GP distribute any capital? Surely that reduces the NAVAD for the following year and so makes it ‘harder’ to earn carry in that year?

Google spreadsheet here that shows the maths: 

Thanks for any help.

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