Sentence examples for a carried interest from inspiring English sources
A carried interest pays managers based on the performance of their fund's investments.
The arrangement would effectively be what is known on Wall Street as a "carried interest," the sources said.
Permitting only an asset management fee would discourage volatility-producing behavior, and permitting only a carried interest fee would discourage excessive risk taking.
None of this is to say that a carried interest bill will still pass, or that Democrats won't cave to the industry's powerful posse of tax lobbyists.
But private-equity firms like Blackstone had long argued that their financial interests and incentives were identical to those of their investors: Blackstone partners, by investing in the same partnerships and having a carried interest, prospered when their clients did.
Until Schumer unveiled his plan, the senate wasn't even considering a carried interest bill (it is, however, considering a tax hike on publicly traded private partnerships, a much narrower proposal that would only hit a few firms).
If there's more execution risk for the sponsor to provide a high return, then he should receive a higher carried interest.
Instead, the members of the GP entity often create a separate "carried interest" pool with respect to investments made after a new person joins the team and decide how interests in future investments will be allocated (with the "carried interest" pool for existing investments remaining unchanged).
Freeport-McMoRan Inc. (NYSE FCX) holds a 56percentt interest, Lundin Mining (OTCPK LUNMF) holds an indirect 24percentt equity interest and Gécamines, the Congolese state mining company, holds a 20percentt carried interest.
Where a private equity fund is in a position where carried interest is no longer a viable possibility, their dependency on management fees may become overwhelming.
The most common components of lead compensation include a service fee and a carry (recall that carried interest is a proportion of the proceeds from a successful exit).
