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.

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Etymology

Origin of carried interest

First recorded in 1750–55

Example Sentences

But the Joint Committee previously estimated that taxing carried interest as income would raise $63.1 billion over a decade, and that cracking down on derivative contracts could raise $16.5 billion in that time frame.

From Barron's • Apr. 22, 2026

Generally, they carry expensive fees, including 10% or more upfront management fees and 20% carried interest on any gains, according to Nasdaq Private Markets.

From MarketWatch • Feb. 18, 2026

Brookfield Corporation is slated to acquire an additional 26% interest in Oaktree’s balance-sheet investments and the remaining carried interest.

From The Wall Street Journal • Oct. 13, 2025

KKR said its income from carried interest, which consists of profit from asset divestments, fell 66% to $194 million in the fourth quarter.

From Reuters • Feb. 7, 2023

The first amounted to 1,800,000l.; and this undoubtedly carried interest.

From The Works of the Right Honourable Edmund Burke, Vol. 01 (of 12) by Burke, Edmund