Promoted equity (carried interest) is a percentage of the income of an investor or investing fund this is paid to the funding supervisor as compensation. It is given in change for growing cost or bearing a disproportionate percentage of drawback risk.
Beyond the desired go back hurdle, the transaction sponsor or “GP” can be entitled to a “promote,” which is an advantage percentage of the asset's coins float in go back for assets performance.
Real Estate Private Equity Definition: Real property personal equity (REPE) companies enhance capital from out of doors investors, known as Limited Partners (LPs), after which use this capital to gather and increase properties, perform and enhance them, after which promote them to understand a go back on their funding.
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