Private Markets
Preferred Return
Definition
What is Preferred Return?
A return that investors generally receive before the manager participates in carried interest.
Example in practice
How This Looks in Practice
LPs receive an 8% preferred return before carry is paid.
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Related Terms
Private Markets
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Equity financing for young, high-growth companies with substantial uncertainty.
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An individual who invests personal money in early-stage companies.
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A preliminary document outlining the main commercial terms of a proposed investment.