Comment by: Anonymous. Posted 12 years ago [2011-05-21 22:57:58]

This short description surprises me. I haven't read the Citi report so I cannot call it wrong. But the mathematics of these incentive fees would not work in a way that shuts down equity distributions - even for a short time. The typical incentive is that the PM gets a fraction of the excess equity IRR above [15%]. That means the distribution to equity in any period will never drop below [15%] of par due to an incentive payment to the PM.