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Carried Interest

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Carried Interest
In a limited partnership, the percentage of the profit that goes to the general partner. For example, if a fund is structured as a limited partnership, the limited partners receive a certain return on their investments and the general partner, who is the fund manager, receives the carried interest. Carried interest exists despite the fact that the general partner does not contribute capital to the partnership; it encourages him/her to make profitable investment decisions for the partnership.
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