Carried Interest

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.
References in periodicals archive ?
(28) If the plan is carried out to completion, the fund manager will have successfully transferred his or her carried interest to members of the family without triggering I.R.C.
But Ongpin, who first appeared before the subcommittee on Wednesday, said the five percent Mercado was referring to was the "carried interest" that he gave to Alphaland president, Mario Oreta, just to convince him to be part of his company.
MATHEMATICAL BIFURCATION: DISAGGREGATING A CARRIED INTEREST
With an 85% interest in Southern Block 2714B Chariot is the operator of the block while state-owned petroleum company, Namcor has a 10% carried interest. Quiver Oil also holds a 5% carried interest in the block.
would have us erroneously believe that moves to change the taxation of carried interest would only affect a handful of hedge fund managers on Wall Street.
I wish during the anticipated Tax Reform negotiations (or battle), Congress will seriously consider offering a fair playing field pertaining to the "carried interest" concept, the so-called profit participation paid to hedge fund/private equity managers, to be taxed at the marginal tax brackets instead of being taxed at a very low rate of 15%, as presently, simply because these aren't capital gains.
With this said, one component that may harm numerous unsuspecting Arkansans is the taxation of income derived from a profits interest, better known as "carried interest."
Other loans that carried interest rates of 6 or 7 percent are rolling over into loans that carry 4 or 5 percent, Iholts said.
According to the terms of the contract, Midway Energy Ltd is to dispose of a 50 percent working interest in its 23,000 net acres of land and its associated wells and production in the Swan Hills area, in exchange for USD20,000,000 in cash and a carried interest in the drilling of the first three wells on the lands.
Taxation of "carried interest" has been the subject of much recent scholarship.
As a result of this restructuring, EQT AB's assets and revenues have increased and EQT AB is entitled to 100% of management fees and 35% of carried interest in future funds.
Accordingly, Implats' interest in the joint venture has been reduced to 24% while Transition maintains a 25% free carried interest through to the completion of a feasibility study.