# Carried interest (also referred to in German as, more rarely, distributed profit share)

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- Post ID: 588980
- Modified: 2023-07-25T21:00:25+00:00
- Language: en

## Definition

The distribution of profits to management - as individuals or as a higher-level, often bank-determined asset management company - at a capital management company. As a rule, a corresponding payment is not distributed until the hurdle rate, i.e., the contractually defined payment to the fund investors, has been exceeded. This triggers a strong incentive on management to generate profits as far above the hurdle rate as possible. - See base compensation, bonus. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

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