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

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Example Sentences

See Examples For:

carried interest

Ask, in writing, how he and his firm are compensated if you invest — commissions, placement or referral fees, management fees, carried interest or other compensation.

From MarketWatch ● Oct. 12, 2026

The backlog has made it harder to fundraise and has weighed on carried interest, a key form of pay tied to the performance of deals.

From The Wall Street Journal ● Sep. 25, 2026

Two proxy-advisory firms recommended a vote against the pay packages, citing transparency concerns and the complex carried interest program.

From The Wall Street Journal ● May 20, 2026

Some platforms that target retail investors offer SPVs with management fees or upfront commissions of 10% or more, plus 2% annual fees and 20% carried interest on any gains, according to Nasdaq Private Market.

From MarketWatch ● May 13, 2026

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 Edmund Burke

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