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

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

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

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

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

The aggregate obligations bearing interest in coin had risen to $2,107,938,000; while the three per cent certificates and the Navy pension-fund, which alone carried interest in currency, amounted to $61,195,000.

From Twenty Years of Congress, Volume 2 From Lincoln to Garfield, with a Review of the Events Which Led to the Political Revolution of 1860 by Blaine, James Gillespie