Economics · Private Equity Concepts
'Carried Interest' or 'Carry' in a private equity fund refers to:
- 1The cost of carrying unsold investments
- 2The General Partner's share of profits, typically 20%, after the hurdle rate is met✓
- 3The debt carried on the portfolio company's balance sheet
- 4The annual management fee paid to the General Partner
Correct answer
The General Partner's share of profits, typically 20%, after the hurdle rate is met
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