The Following Statements Are True of Private-Equity Partnership Agreements

The following statements are true of private-equity partnership agreements:

A) The partnership agreement has a limited term, typically 10 years or less, and the general partners get a management fee plus carried interest in 20 percent of any profits earned by the partnership.
B) The partnership agreement has a limited term, typically 10 years or less; the general partners get a management fee plus carried interest in 20 percent of any profits earned by the partnership; and the limited partners get paid off first, but they get only 80 percent of any further returns.
C) The partnership agreement has a limited term, typically 10 years or less; the general partners get a management fee plus carried interest in 20 percent of any profits earned by the partnership; the limited partners get paid off first, but they get only 80 percent of any further returns; and the general partners can reinvest the limited partners' money.
D) The general partners get a management fee plus carried interest in 20 percent of any profits earned by the partnership, and the limited partners get paid off first, but they get only 80 percent of any further returns.