carried interest

American  

[kar-eed in-ter-ist, in-trist] / ˈkær id ˈɪn tər ɪst, ˈɪn trɪst /

noun

Finance.

1. a share of profits received by managers of private investment funds, as private equity and hedge funds, unrelated to initial money the managers may or may not have contributed.

   His piles of accumulated carried interest have fallen neatly into a tax-free loophole.

---

Etymology

Origin of carried interest

First recorded in 1750–55

Example Sentences

Carried interest, or “carry,” refers to the share of a fund’s profits—typically 20%—that goes to managers.

From The Wall Street Journal

But stake sales “also comes with things that are not that attractive to the GPs,” including reduced fee revenue and carried interest, and “some constraint on your flexibility” regarding firm strategy, he said.

From The Wall Street Journal

They are worried about when and if their carried interest, or “carry”—pay tied to the performance of their deals—will materialize.

From The Wall Street Journal

That can make a difference when it comes to the actual amount of carried interest someone receives.

From The Wall Street Journal

That’s set to give Brookfield an additional 26% interest in Oaktree’s balance-sheet investments and the remaining carried interest, and BAM a further 26% interest in Oaktree’s fee-related earnings.

From The Wall Street Journal