2% a year in fees for ten years is $20M. 20% of $100M profit after fees is $20M more. One brick is $1M.
What the film says
On $100M a 2 and 20 fund can take $40M Each brick = $1M 2% a year in fees 2 bricks Every year, for 10 years $20M whether the fund does well or not Then the 20 a fifth of the profit $100M after fees $20M more 40 bricks 2 and 20
In the glossary: Carried interest
A simple example with round numbers, not advice. Terms vary by fund.
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