Carried Interest

There could be almost $80bn of NAV in funds where carry is owed back to LPs that have backed US vehicles, according to research from Upwelling Capital Group.

Debates on increasing tax on carried interest shouldn’t ignore the wider contribution private equity brings to economies.

Linking a portion of carried interest to impact performance is becoming more common, with private equity firms like Apollo, Apax and EQT implementing such a mechanism. LPs are split on the idea.

Tim Eberle, managing director of Citco Fund Services (USA), outlines the firm’s recommended steps to reduce heightened clawback risk.

GPs see a number of benefits to tying their remuneration to impact KPIs, according to a report from The ImPact.

The tech companies’ partnership will give clients automated carry and waterfall calculations, as well as instant access to relevant data from fund documents for audits and more.

The tech provider aims to make calculating overall carry more efficient as firms struggle to attract and retain operational talent.

Provider aims to make calculating overall carry faster and less error prone, and will soon offer automated employee-specific carry calculations.

Delegates at the 2014 forum heard about the challenges around automating the carry waterfalls process – something that’s still true nearly a decade on.

Earlier efforts to reform carried interest taxation had stalled, before US Senator Joe Manchin announced on Wednesday that he and Senate Majority Leader Chuck Schumer had worked out a deal.