Carried interest is the share of profits due to the fund manager after the cost of investment has been returned to investors. Carried interest will usually be expressed as a percentage of the total profits of the fund. For example, a fund manager might receive 20 per cent of the funds profits and then distribute the remaining 80 per cent to investors.
The percentage of a venture capital fund's profits... Add a comment
Also known as "carry", it is the percentage of profits (generally 20-25%) that General Partners receive out of the profits of the investments made by a fund. For example, a $100 million fund raised from Limited Partners is invested into a portfolio of investments now worth $500 million. Assuming profits from proceeds of $50 million. Limited Partners would receive $40 million and the other $10 million would accrue to the General Partners as their carried interest. Today, General Partners typically put up about 1% of a fund's commitments and the Limited Partners put up the balance. Typically, carried interest is paid only after the original investment amounts are returned to the Limited Partners.
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."
A share in the profits of a private equity fund for the management.
The portion of any profits realised by a venture capital fund to which the fund managers are entitled, in addition to any returns generated by capital invested by the fund managers. Carried interest payments are customary in the venture capital industry. Also known as the carry.
A fractional working interest in an oil and gas lease that comes about through an arrangement between co-owners of a working interest.
A bonus entitlement accruing to an investment fundâ€(tm)s management company or individual members of the fund management team. Carried interest (typically up to 20% of the profits of the fund) becomes payable once the investors have achieved repayment of their original investment in the fund plus a defined hurdle rate.
An arrangement under which an interest in oil and gas rights is assigned inconsideration for the assignee advancing all the funds to develop and operate an oil or gas property.
The general partner's share of the profits generated through a private equity fund. The carried interest, rather than the management fee, is designed to be the general partner's chief incentive for strong performance.
Share in the profit of a venture capital fund given to the management company and its managers (general partners) based on the success of the managed investor fund as compensation for their entrepreneurial efforts.
A term used by independent oil operators who are selling interests in a well they propose to drill. The operator offers to drill the well to casing point if the investors will "Carry" or pay his share of the cost. See ONE-THIRD FOR A QUARTER.
A stake taken in the investee company by the venture capital or buy-out fund managers. Carried interest can be in the form of options.
The portion of any gains realized by the fund to which the fund managers are entitled, generally without having to contribute capital to the fund. Carried interest payments are customary in the venture capital industry, in order to create a significant economic incentive for venture capital fund managers to achieve capital gains.
Also known as "carry". The share of profits from investments made by the fund (generally 20-25%) that the managers receive. Typically, carried interest is only paid after investors receive their original investment back plus a preferred return.
Carried interest or simply "carry" represents the share of a private equity fund's profit (usually 20%) that will accrue to the general partners, the rest goes to the investors.
The portion of earnings and capital gains allocated to a fund manager or private equity firm, with the remainder going to investors.