Search results
Results from the WOW.Com Content Network
Carried interest, or carry, in finance, is a share of the profits of an investment paid to the investment manager specifically in alternative investments (private equity and hedge funds). It is a performance fee , rewarding the manager for enhancing performance. [ 3 ]
On April 2, 2009, Congressman Levin introduced a new and substantially revised version of the carried interest legislation as H.R. 1935. On May 28, 2010, the House approved carried interest legislation as part of amendments to the Senate-passed version of H.R. 4213. [9] On February 14, 2012, Congressman Levin introduced H.R. 4016. [9]
This waterfall includes the preferred return : a minimum rate of return (e.g. 8%) which must be achieved before the general partner can receive any carried interest, and the carried interest, the share of the profits paid the general partner above the preferred return (e.g. 20%). [6] Transfer of an interest in the fund
Carried interest refers to a longstanding Wall Street tax break that let many private equity and hedge fund financiers pay the lower capital gains tax rate on much of their income, instead of the ...
For premium support please call: 800-290-4726 more ways to reach us
The 2024 election year is underway, which means it’ll be a loud year for dealmakers’ debate over the “carried interest loophole.” 44% of dealmakers say favorable tax treatment of carried ...
One counterargument is that the preferential rate is warranted because a grant of carried interest is often deferred and contingent, making it less reliable than a regular salary. [35] The 2017 tax reform established a three-year holding period for these fund managers to qualify for the long-term capital-gains preference. [36]
For premium support please call: 800-290-4726 more ways to reach us