The strategy is capacity constrained, they’ve returned all outside investor capital and distribute profit to employees to keep capital within accessible levels. The $1mm wouldn’t be able to compound as you’ve described as much of the profits will be returns, not reinvested.

Well, the thing is that they cap the size of the fund at $10B so it's not really a CAGR per se as the original capital isn't appreciating at that rate.

It's just they have $10B invested and then they distribute $6.6B per year and that's it (i.e., the fund doesn't become $16.6B next year).

Still take your point that it's an insane figure!