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Quantitative Finance · Glossary

What is Partnership share, carried interest?

Also known as: partnership share · carried interest

Definition 13.5 The Industry: Firms, Roles and Careers · Chapter 13 — How Pay Works

A partnership share is a member’s entitlement to a share of a partnership’s profit, fixed by the partnership agreement, in return for capital contributed and work; it is paid as members’ remuneration (chapter 11) rather than as salary. Carried interest is a share of a fund’s profits, typically above a hurdle, paid to its managers through an interest in the fund’s general partner rather than as a fee.

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