Carried Interest (Carry)

Definition

The share of investment profits that a fund manager (general partner) receives as performance-based compensation, typically 20% of profits above a hurdle rate. Carry is the primary financial incentive for venture capital and private equity fund managers.

Related Terms

Cap Table (Capitalisation Table) Capital Deepening Capital Expenditure (CapEx) Capital Intensity Ratio Capitalisation of Intangibles

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