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

They are worried about when and if their carried interest, or “carry”—pay tied to the performance of their deals—will materialize.

From The Wall Street Journal • Nov. 20, 2025

Revenue increased 12% to $1.25 billion in the quarter, with gains in management and incentive fees as well as carried interest income.

From The Wall Street Journal • Nov. 7, 2025

KKR struck deals worth $16 billion during the quarter, raised $13 billion of new capital, generated $496.5 million as carried interest, and held $113 billion of unspent capital.

From Reuters • Nov. 1, 2022

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