Carried Interest

Carried Interest is the share of the capital gains of a venture capital fund which are allocated to the general partner or manager of the fund as compensation. Typically, a fund must return the initial capital plus a preferential rate of return to the limited partner before the general partner can share in the profits. The general partner will usually receive Carried Interest equal to around 20% of the profit earned, although some successful firms can receive up to 25% or 30%.


ACCELERATE YOUR STARTUP LAW KNOWLEDGE!

Startup Law doesn’t have to be a confusing maze. The practical knowledge in "Acceleration: What All Entrepreneurs Must Know About Startup Law" will help you make the smart decisions to protect your startup and its future. Available in ebook and hardcover.

Buy the Book on Amazon
startup-lawyer-acceleration-cover