carried interest

[ kar-eed in-ter-ist, in-trist ]

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.

Word History and Origins

Origin of carried interest¹

First recorded in 1750–55

Example Sentences

The amendment cutting carried interest stood no chance because it would’ve required 60 votes to pass if the Senate had voted on it, she said.

From ProPublica

To pay for making the child and adult dependent care credit refundable, my amendment would close the carried interest loophole, a tax reform that the president has endorsed.

From ProPublica

Citadel’s lobbying disclosures show the firm lobbied Congress on the carried interest issue in 2017, as well as the broader tax bill.

From ProPublica

We use words like bootstrapping, call price, and carried interest.

From The Daily Beast

Wilkins notes “most of the income is capital gains, which comes through Bain, all of which is probably carried interest.”

From The Daily Beast

At its core, the entire carried interest debate is about a mind-set.

From The Daily Beast

Without the carried interest rate, lobbyists will tell you with a straight face, the engine of capitalism would break down.

From The Daily Beast

In one the promise was made definite as to the time of its fulfillment, and the amount or value of the promise carried interest.

From Project Gutenberg