Private Markets
Carried Interest
Definition
What is Carried Interest?
A share of fund profits allocated to the manager after contractual conditions are met.
Example in practice
How This Looks in Practice
The GP receives 20% of profits above the agreed waterfall.
Keep learning
Related Terms
Private Markets
Private Equity
Investment in privately held companies, often with active ownership and a multi-year exit plan.
Private MarketsVenture Capital
Equity financing for young, high-growth companies with substantial uncertainty.
Private MarketsAngel Investor
An individual who invests personal money in early-stage companies.
Startup InvestingTerm Sheet
A preliminary document outlining the main commercial terms of a proposed investment.