Private Equity-carried interest calculation

stands for in CFA institute L2 Curriculum Vol2, page 23 ___________________________________________________________ in , in the “solution to 2” table. Column 6, carried interest of 2006 = 20% *(NAV before Dis. Of 2006 - NAV before Dis. Of 2005)=20%*(234.1-178.2)=11.2 This calculation is not fair for LPs and GP. Because NAV before Dis. Of 2006 contains the Called down capital 5, which may be done in middle of 2006, or even at beginning of 2006, may not be used by GP in new project in 2006. Thus , can’t count carried interest on that part. Also from the other side, during 2006, GP generate Operating results of profit 105, which is much larger than the difference of NAV before Dis. Of 2006 and the one of 2005 =(234.1-178.2=55.9). GP should charge carried interest based on operating results after deducting Mgmt Fees, thus carried interest =20%*(105-2.3)= 20.54. This is more reasonable . And I’d like to assume the datas of 2007 in the sample. Year//Calleddown//paid-in capital//Mgmt Fees//Operating Results///NAV B4 Dis//Carried Interest 2007////////5////////////20//////////////////2.4///////////////55///////////////205.5////////////X Based on the formula in Curriculum, X=205.5-234.1=-28.6, i.e. No carried interest for 2007. In fact GP did generated positive operating results in 2007, where is the reward for them. What’s the logic in the Curriculum?