For example, private equity funds are structured, and the scale is 654.38+0 billion. 60 million is the priority and 40 million is the worst.
If the fund makes money. For example, I made 20%. Priority income is generally low, such as 7% when it is established. Then even if this fund earns 20%, the priority can only allocate 7% of the income. Other benefits are not as good.
If the fund loses money. Priority can ensure that the principal is not lost. Losing to the next level is almost the same. Priority will stop the fund.