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What is Pref on Synthesis Analyzer?
Can someone explain "Pref" to me on the synthesis analyzer? Let's say we do a 80% LP/20% GP split and set the pref at 7%. Does this mean: A) up until 7% return the LP return is 100% and GP return is 0, and after we hit 7% then the LP return is 80% and GP return is 20% or B) Regardless of the return the split will be 80% LP and 20% GP, however the GP doesn't get to collect on the money until the returns hit above 7% C) something else? Sorry I'm new to understanding this. I'd love a "explain it like i'm 5" explanation of pref and hurdle on the synthesizes analyzer if anyone is willing to help
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New comment 6d ago
1 like • 7d
@Isaac Holtz I really appreciate you taking the time to write such a thorough response. I read a few articles before I made my post and was still confused. Your response explained everything much more clearly and removed any confusion. Thank you! 🙏
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Marcus Singh
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@marcus-singh-4780
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Active 17h ago
Joined Dec 6, 2024
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