Catch-up
Catch-up takes effect when an investor’s returns reach the defined hurdle rate, gi...
Claw back
An arrangement in which either the investors or the manager in a vehicle agree to use their prior dividends or The annualized percentage return beyond which the outperformance of net investor returns are shared with the manager.Hurdle Rate
See Also
Private Equity Salary, Bonus, and Carried Interest LevelsCarried interest wormhole : Planet MoneyWhat is carried interest, and how is it taxed?2 Ways Hedge Funds Avoid Paying TaxesIncentive fee
See definition performance fee.
Carried interest
A re-allocation of profits from the investor's capital account to the investment manager capital account based on the ability of the latter par...
Promote
See definition Performance Fee.
Waterfall calculation
When returns are paid to more than one party in a vehicle, the order of priority for cash flows of these is set out in the waterfall calculation.
