Carry (Carried Interest, Profits Interest)

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Ca Ce Cf Ch Cl Co Cp Cr
Cap Car

Carry (Carried Interest, Profits Interest)

A performance-based fee paid to the Organizer and other designated third parties as specified in the Operating Agreement, calculated as the net proceeds received by an SPV upon a liquidity event, minus the initial investment. Carry is typically paid after investors have received a return on their investment.

Note:
Under the Tax Cuts and Jobs Act, holders of a profits interest are eligible for the preferential long-term capital gains rate only on gains realized from the disposition of capital assets held for more than three years.

Read more: https://www.investopedia.com/terms/c/carriedinterest.asp

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