Questions:
My hedge fund had capital of $500 million at the start of the January 2024. During the year, I borrowed $200 million from William capital management LLC at 12%, and $100 million from James Capital LLC at 8%. I charge a 10% management fee based on the year-end assets under management after accounting for trading costs. In addition to this, the tax rate in our country is 18% on profits. The fund generated a gross return of 35% before deducting the 2% in trading costs of the total assets under management at August 31 2024. 

What is my net return?

I have three clients: Salman (35% share), Zaneeq (35%) and Blake (30%). What will each of them recieve?

Reference answers:
Capital of investors at 1 Jan 2024 $500,000,000
Borrowed from William $200,000,000
William interest rate 12%
Borrowed from James $100,000,000
James' interest rate 8%
Trading costs (2% of AUM) 2%
Gross return 35%
Management fee 10%
Taxation 18%
 
Step 1 - Assets under management at period end 
Assets under management (August 2024) = Total capital * (1+gross return) $1,080,000,000
 
Step 2 - Trading costs 
Trading costs = assets at period end * 2% $21,600,000
 
Step 3 - Management Fee 
Management fee = AUM after trading costs * management fee $108,000,000
 
Step 4 - Borrowing costs 
Interest costs on borrowing from William (Borrowing * interest rate) = $24,000,000
Interest costs on borrowing from James  (Borrowing * interest rate) = $8,000,000
 
Total borrowing costs: $32,000,000
 
Step 5 Net Return after deducting all costs 
Total return (35%) $280,000,000
Less: Trading costs  $21,600,000
Less: management costs $108,000,000
Less: Borrowing costs $32,000,000
 
Net return: $118,400,000

Each client will receive a share of the net return in proportion to their holdings.

Salman's share: $118,400,00 * 0.35 =  $41,440,000
Zaneeq's share $118,400,00 * 0.35 = $41,440,000
Blake's share: $118,400,00 * 0.30 =  $35,520,000