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

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

In 3Q, 21.2% of outstanding mortgages carried interest rates of 6% or higher, edging past the 20% share with rates below 3%.

From The Wall Street Journal • Jan. 15, 2026

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

From The Wall Street Journal • Nov. 20, 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 whole navy debt indeed amounted to 4,576,915l.; but of this only a part carried interest.

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