Carried Interest

Carried interest refers to the profit participation of the management of a private equity company or comparable financial entities.

Literally translated from English, it means "transferred interest income", although this does not quite correspond to the actual situation. Although the term "interest" is also used colloquially when discussing the return on an investment, strictly speaking it is not a fixed return (= interest income) on the capital invested, but rather the profit generated and the percentage share of this profit.

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