The Performance of the Limited Partner is expressed as a percentage and represents rate of return over time, net of all Fees (§ 3.3). To determine the Performance of the Limited Partner all the necessary Capital Accounts (§ 6.3) of the Limited Partner are used. The necessary accounts used are determined by the time period being quantified. The Performance of the Limited Partner is the summation, of the performance(s) net of all Fees, of all the necessary Capital Accounts weighted on the basis of their relative size. The equation below can be used monthly, yearly or for any accounting period necessary.
aEBal = Annualized Capital Account Ending Balance |
yEBal = Yearly Capital Account Ending Balance |
tEBal = Total Ending Balance |
pYC % = Performance of Yearly Capital Account |
pAC % = Performance of Annualized Capital Account |
P % = Total Performance |
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tEBal = yEBal + aEBal1 + ... aEBaln |
P % = (pYC % × yEBal / tEBal) + (pAC % 1 × aEBal1 / tEBal) + ... |