Carried interest is the share of profit the general partners or fund managers will receive apart from their other forms of compensation. Though this definition looks simple, there are several requirements to consider for a company to have a carried interest.
To know what the fund managers can expect to receive based on the fund’s performance, professional valuers conduct the “carried interest valuation”. There are various factors affecting carried interest valuation, including the investment duration, fund performance, management fees, etc.
Read more: https://eqvista.com/company-valuation...