what is carried interest

Sat, 02 May 2026 03:04:13 +0000

Carried interest is a profit share earned by general partners in investment funds and often taxed at a lower capital gains rate. This form of compensation typically becomes payable only if the... In a hedge fund environment, carried interest is usually referred to as a "performance fee" and because it invests in liquid investments, it is often able to pay carried interest annually if the fund has generated a. Carried interest is a form of compensation, often structured as a performance fee, paid to private equity and venture capital fund managers. The compensation structure typically includes a 2% annual. Carried interest is a key concept in the world of private equity, hedge funds, and other alternative investment vehicles. It refers to the share of the profits that fund managers or general.