On the Private Equity study session, it talks about NAV before and after distributions:
NAV before distribution = NAV after distribution + Capital called down - management fee + Operating results
NAV after distribution = NAV before distribution - Carried interst - distribution
Can someone please explain to me the logic in the two formulae above? BY distribution, does it mean distributions to the limtied partners? With the first formula, why do we ADD capital called down, etc? I am trying to understand it so I don’t have to memorize it.