- Book
- February 2015
- 288 Pages
Carried interest is a form of compensation for private equity fund managers. It is a share of the profits generated by the fund, typically ranging from 10-20%. The fund manager receives the carried interest after the fund has returned the original capital to the investors. Carried interest is usually paid out after the fund has achieved a certain rate of return, known as the “hurdle rate”.
Carried interest is a key component of the private equity market, as it provides an incentive for fund managers to maximize returns for investors. It is also a way for fund managers to share in the success of the fund.
Companies in the carried interest market include Blackstone, KKR, Apollo Global Management, Carlyle Group, and Oaktree Capital Management. Show Less Read more
