Investment

What is carried interest? Carried interest is the GP’s share of the profits. This is different from “guaranteed” fees such as asset management or acquisition fees. The GP should only get carried interest if the fund performs. Other names for “carried interest” You may also hear people talk about “promote” or “incentive allocations” or similar terms. These […]

What is carried interest? Carried interest is the GP’s share of the profits.This is different from “guaranteed” fees such as asset management or acquisition fees. The GP should only get carried interest if the fund performs.   Other names for “carried interest” You may also hear people talk about “promote” or “incentive allocations” or similar terms. These

How do you get paid for managing a fund? Today we’re talking about the fun stuff…money!   Ultimately, there are many reasons to want to raise an investment fund. You get to work on interesting deals (often bigger deals than you’d be able to take down by yourself) You get to meet interesting people You can be your

Preferred returns, GP catch-ups, and clawbacks This is the grand finale of our three-part series about how carried interest works in investment funds and SPVs. If you haven’t read Part 1, go check those out first. Let’s bring it home! Preferred Returns In many funds (especially real estate and private equity funds), the waterfall has more steps than the simple 2-step waterfalls

What is carried interest? Carried interest is the GP’s share of the profits.This is different from “guaranteed” fees such as asset management or acquisition fees. The GP should only get carried interest if the fund performs.   Other names for “carried interest” You may also hear people talk about “promote” or “incentive allocations” or similar terms. These