What is the meaning of Carried interest?

Carried interest is a share in the profits of a private equity fund. Typically, a fund must return the capital given to it by limited partners plus any preferential rate of return before the general partner can share in the profits of the fund. The general partner will then receive a 20% carried interest, although some successful firms receive 25-30%. Also known as "carry" or "promote.".

3
 
|15 years ago|451 views|share |citing 
APABarry Goldsmith. (2010). Carried interest. Retrieved September 22, 2026, from http://smartdefine.org/carried_interest/definitions/1149462
ChicagoBarry Goldsmith. 2010. "Carried interest" http://smartdefine.org/carried_interest/definitions/1149462 (accessed September 22, 2026).
HarvardBarry Goldsmith 2010, Carried interest, Smart Define, viewed 22 September, 2026, <http://smartdefine.org/carried_interest/definitions/1149462>.
MLABarry Goldsmith. "Carried interest" 21 October 2010. Web. 22 September 2026. <http://smartdefine.org/carried_interest/definitions/1149462>