Carried interest is ________.
A)the fee earned by a private equity fund for management of the equity fund investments
B)the percentage of profits earned by a private equity fund for management of the equity fund investments
C)the interest charged by a private equity fund for short-selling the equity fund investments
D)the carry trade profits earned by a private equity fund for swapping the equity fund investments

Question

Quizplus · Accepted Answer

Carried interest refers to the percentage of profits earned by a private equity fund as a reward for successful management of the fund's investments. It is generally calculated as a percentage of the profits earned above a certain benchmark return.

Carried Interest Is ________